Looking to Identify the Most Experienced Note Buyers on BP

[Chris Clothier]

I mean no dis-respect with the title, I just need to quickly determine who the real players in the industry are - whether they are individuals, companies or institutions. Please feel free to reply on here or refer individuals on here who are known as high quality note buyers.

I need to be educated quickly on the preferred terms and structure as well as seasoning requirements for top note buyers.

This is an area of real estate that I have no past experience and would like to network with those that are considered experts and who are actively buying private notes.

Thanks in advance.

Chris

[Loc R.]

Chris,

Note buyers in today's market are becoming more picky. Whereas a year ago they were buying entire notes, most are now only offering partial purchases.

Off the top of my head, here is how you get 75-80% of face on a note in today's market:

1. Equity!!! 20% down for owner-occupied.
2. Credit. 620 minimum.
3. Debt to Income ratio.
4. Full amortization, 10 years max. Impounded taxes & escrow. 3rd party note servicing. ACH payments.
5. Verified income of payor.
6. Verified value of property.

Seasoning: More is always better. But if you're looking to churn through your seller-financed flips, 3-6 months of seasoning is usually the requirement.

If you have a relationship and a track record, some note buyers will buy your notes "green."