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Updated over 16 years ago, 04/10/2008
A Question on Selling a Note
Here is a hypothetical situation -
I hold a 1st lien position note secured by commercial land. Let's say the land is worth $ 4,000,000 so LTV on note is 50%.
The note is a 5 YR Balloon, I/O due in 5 YRS the amount is for $ 2,000,000 with the note rate at 9% interest only for 5 years.
Interest payments collected monthy would be $ 15,000 with $ 900,000 collected over 60 months and $ 2,000,000 due at month 60.
What could I expect if I wanted to sell this note? Even a ballpark figure is fine. I could also structure the note with different terms and rates to appeal to a broader base of note buyers also.
Any information would be appreciated. Thanks.
Paul