Posted by Michael Morrongiello on August 06, 2008 at 07:06:39:
In Reply to: County assessor info sheds some more light on this posted by Joshua Martino on August 06, 2008 at 01:33:40:
Joshua:
Looks like something "funny" has gone on here...Not sure WHEN this investor acquired the property and for how much? (but I suspect it was for FAR < less than the sales price he is or did sell the property for recently and create "terms" or seller financing)
What makes a "good" note...
Well they come in all forms, shapes, sizes, property types, etc. - so your parameter are just a start to look at. In my 25+ years of buying, brokeing, investing, in seller financed "paper" - there is one CARDINAL RULE we continue to harp back to;
DON'T BUY THE NOTE (at any price) - IF YOU ARE NOT COMFORTABLE WITH OWNING THE PROPERTY...
So, either through discounting, yield, or some other creative approach to buying the seller financed Note (like structuring a PARTIAL purchase of just a stream of some of the installment payments to keep ones ITV- Investment to value down to a comfortable level)- remember that if the Note stops performing down the road you may end up owning that collateral.
So - ask yourself if you invested $19K and had to then fund some additional "headache" expenses for attorneys fees, court costs, frustation, of taking back this property in this area of town, etc. - are YOU OK with that?
Balancing your answer with the YIELD should help guide you.
Michael Morrongiello
www.sunvestinc.com