Performing note

[Mila Borden]

I'm holding a performing note in the $50K range at 7.5% interest with 1 year of seasoning and a balloon payment at the end of 15 years.

I have no way of knowing the credit score of the home owner. He's an active investor with multiple properties and uses a local management company. The property has been consistently rented and he makes his payments, but I have a feeling that his credit score is low because he's trying to buy as many properties as he can in this market. Is this a serious problem for me if I try to sell the note?

I would like to sell this note and free up the cash to invest in something else.

What is the best way to do this? Should I list it on one of those web sites or work with an individual? What would be a reasonable discount in this case?

I appreciate any advice from experienced investors.

[Loc R.]

If it has 180 payments, and is scheduled for 180 payments, then there should be no balloon, as the final payment should put you at $0 balance.

Credit will get pulled, if not by you then by the potential note investor.