Note Buyers

[Dustin Ruhl]

I have several performing land contracts for sale in the Indianapolis market. 8-10 year terms at 8% average rate. Can anyone point me in the right direction of legit private note buying companies. Would be helpful.

[Darren Eady]

Originally posted by @Dustin Ruhl:

I have several performing land contracts for sale in the Indianapolis market. 8-10 year terms at 8% average rate. Can anyone point me in the right direction of legit private note buying companies. Would be helpful.

I've been creating and selling mortgage notes for about six years and have completed over 6000 total loans and note sales.  I found that the interest rate that most investors want is 12%.  I've tried 7%, 9%, 10% and 18%.  If someone were given an 18% return, they would never go back to 12% and I couldn't sell under 12% consistently.  I think you will be holding these 8% returns for 8-10 years yourself. 

I am looking for a warehouse line of credit now with a facility that would be happy with a ROI of less than 9%, but honestly, I haven't found it yet. If anyone on BP knows of an organization lending lines of credit for HMLs, based on collateral property at only 55-65% LTV, with an overall interest rate of less than 9% with the borrower having a perfect credit score and track record of payments and great income and assets, please let both Dustin and I know! Thanks!