FAQ: What every note investor needs to know

Q – Hi Tim,

Can you tell me what successful investors are looking for when they evaluate a privately-held note for purchase? In other words, what are the criteria that make up a good note in today’s market?
Ken

A – Hi Ken-  I like to see AT LEAST a 10% CASH down payment and a 15 to 30-year amortization with at least three months payment history (the longer the better).

Now, while the above example constitutes what I would ideally LIKE to see, in practice, we don’t always see notes that have these terms. However, don’t be afraid to submit a note of lesser quality to an institutional buyer.

Thanks for a great question — hope this helps!

This entry was posted in Main blog. Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>