All Forum Posts by: Marc Faulkner

Since equity and credit are the two most important factors in valuing performing notes, they are also always going to be a concern for investors that are pricing your notes. Each investor has their own way of determining the value of the underlying collateral and values have taken a big hit all over the nation. Credit is easy to check and down payments are easy to verify but, property values are hard for anyone to determine. Most all note buyers left in the market tend to lean towards conservative valuations right now because when all else fails, they now own the property and for performing note buyers this is the last thing they want to deal with. The golden rule in the note business is: "he who has the gold makes the rules".

As a broker, a smart thing to do is to look at the note as if you were going to invest your own money. Ask yourself, "why is this a good safe investment"? From there your job is to build a package (file) on the note designed to add value and make the note buyers job of pricing the note easy. Always, always, always; get a copy of the Promissory Note, Sales Agreement, Closing Statement and enough information about the payers to pull credit. Also you should investigate the values, look for previous appraisals, comps (as you mentioned) tax values and anything else that helps establish a value and include these items with your quote request if possible. A well prepared package goes a long ways and is certain to get your note noticed over and above the other notes submitted with bad info and or no credit or value information. Still the bottom line is that the value is up to the investor in the end and if they are not comfortable with the ITV (Investment to Value) they will find a reason to pass on the deal as any smart person would. If the value is there, help the investor see it in your initial quote request. If you honestly think your investor does not know what they are doing in determining values, find more investors. I would be happy to help you with this and wish you luck on future notes!

Thank you for the feedback, I will look into this. Wondering if anyone else is having any problems and any other comments on how we can make the site more informative? I appreciate any comments in advance.

Here is a little bit of advice on how to keep your costs down: Tie the mobile home up with a contract and 100 down. Find a buyer BEFORE you actually buy home. I have also found that is it easy to get folks that are willing to carry a note at great terms when I buy so I don't have to tap into my cash or credit. Buy on a note, sell on a note-use your buyers money as your down payment! I hope this helps.....

Thanks for checking it out James. I was thinking we had a huge flaw!

Joshua,
Thanks for the quick response. I just signed on using Firefox and was able to read everything. I wonder if anyone else is having problems seeing the content?

Our new site is up and running after a year long re design. We put in a lot of effort to try to make our site interesting and informative for the different groups of real estate investors, note brokers and those looking to sell a real estate note. I also included some back links to articles and my group here on BiggerPockets: Note Brokers Back Office. So far the response has been great from our note brokers but, I am always looking for ways to make the site more informative and more active. I appreciate any feedback in advance and thank you for checking out our site!

Congratulations Josh! Here is to the next 40k members I am sure you are going to have:)

We just re designed our website and have a lot of great information regarding seller financing, creating real estae notes and selling real estate notes. I would be interested in trading links that aould add value for our websites visitors.

Welcome to BiggerPockets Brian. You are on the right track by networking with investors in your area if you want to start wholesaling. The key is to build a big buyers list and I would try making friends with local investors and those doing deals in your area. Look for the "We Buy Houses" ads and for those ads offering to finance the sale or do lease options, land contracts, etc. These are the guys that are doing deals in your area. Make friends with them and figure out what they need and fill the need.

Maybe you should run a test advertisement for these types of hmes in your area and see what the response is first. If you get a few buyers leads you may find the motivation to become a buyer yourself. I like your idea of learning on a small scale with out big investments. Test the waters-Craigslist if FREE to advertise on!