All Forum Posts by: Andy Wang

Hi bigger pocket,

Hope someone can help with insights on the situation. I sold my precious business for 1.5M seller carry. Buyer made the down payment and is keep making monthly payment. Remaining balance is 1.2M payable for 4.5 years @ 8.5% interest, 20k minimum. The business itself is generating 20-40k per month. Buyer had 40 employees and is in the same industry. No inventory. Asset sold was mainly transfer of client list and contracts.

Does it make sense for me to seek out a note purchaser? And what discount should I expect? Should I be looking for selling all or a portion of the note?

Main motivation is to use the cash for bigger investments like MHP/MF building purchases. Not in any hurry. But is looking to sell at the right discount.

TIA

Question 1:

What is the security behind the note? Is it just the business with client list and contracts? If its the business then asset based lenders may be interested. Questions they will have is who is the owner, what experience do they have, is their key person insurance against them etc.

Biggerpockets probably not the place to find someone to buy a note against a business as most of us are only real estate.

Real estate notes is a completely different story.

Thanks Chris! The intention of this post was more towards asking a question rather than trying to find a note purchaser because I just started SFH and MHP investing not long ago and figured biggerpocket might be a proper place to post this question lol. Based on the comments received thus far I think it's prob make the most sense to hold on to the note. Thanks everyone for responding!

1 Vote

Main motivation is to use the cash for bigger investments like MHP/MF building purchases. Not in any hurry. But is looking to sell at the right discount.

TIA

2 Votes

All Forum Posts by: Andy Wang

Andy Wang has started 1 posts and replied 2 times.

Post: Should I sell my note? 1.2M @ 8.5% for 4.5 yrs

Post: Should I sell my note? 1.2M @ 8.5% for 4.5 yrs