Discount Bank Notes For Sale

NOTE TRADING MECHANICS 101

The current economy limits the number of BANK QUALIFIED POTENTIAL BUYER’S for real estate. This ads to the downward pressure of the achievable price for your PROPERTY FOR SALE. The simple solution for this dilemma is often overlooked by all parties to the transaction, VENDOR, PURCHASER, REAL ESTATE AGENT. The solution is VTB (VENDOR TAKE BACK), or  a TRUST DEED this means the VENDOR holds a mortgage on his property for the balance of the price after the PURCHASER made his DOWN PAYMENT, example: PROPERTY VALUED AT $200,000, the purchaser has $80,000 for a DOWN PAYMENT, leaving a $120,000 balance to be financed. The VENDOR takes back a VTB for $120,000 for 5 years with a 25yr AMORTIZATION at a rate of 8% which translates into monthly payment of $926.18. The vendor wanting to cash out would offer the mortgage note at a discount to investors. The 8% return to the investor with a LTV(LOAN TO VALUE RATIO)  of 60% security is quite attractive thereby netting $120,000. The vendor can sweeten the deal by DISCOUNTING the MORTGAGE to $110,890 and thereby giving the note purchaser a ROI(RETURN ON INVESTMENT) of 10%.

There is another possibility for the VENDOR of accessing a smaller lump sum of cash by just selling the 5 yr cash flow($926.18 x 60) and retaining the principal, this would yield the vendor of the first example $43,590.97 and still collect the REMAINING PRINCIPAL BALANCE OF $ 110,728.73 at the end of the 5yr term.  The NOTE PURCHASER would receive the cash flow of $926.18 monthly for 5yrs($926.18 x 60) for a total of $55,570.77 with AN INCENTIVE of 10% ROI on the cash flow portion, buying it for $43,590.97.

The next step in the money chase is to find a buyer for your MORTGAGE NOTE. This can be achieved in several ways, contacting Real Estate Agents, Mortgage Brokers, or placing advertisement in your local papers, or doing research on the internet.

One of the ways to achieve the optimum price on your mortgage note is to deal directly with a buyer. This is a daunting task if you do not have any experience or contacts in this field. The solution to this is WWW.NOTETRADINGPOST.COM Where BUYERS and SELLERS can deal directly with each other.

If you are looking for a place to advertise your note for sale directly to potential purchasers or you wish to invest and deal directly with the NOTE VENDOR  then your choice site is WWW.NOTETRADINGPOST.COM

It is a good starting point for both BUYERS and SELLERS to visit WWW.NOTETRADINGPOST.COM to get an overview of what is available in the REAL WORLD.