3/6/09

Note Pricing. I am still trying to figure out how you price or value my note?

Real estate notes are valued or priced based on 13 factors.

These factors are known as the "Bakers Dozen" of note valuation.

Some notes are structured to be really strong in 4-5 of the factors, but may be very
weak in the other 8-9 variables that determine real estate note value.

It is the "whole" note structure that is taken into consideration when pricing each real estate note.

Let's reveal the 13 factors that will determine the value of your note:

1. What type of property did you sell?
2. When did you sell it?
3. What was the selling price of the real estate?
4. What was the down payment you received?
5. What city, state is the property located in?
6. How long did you own the property prior to selling it?
7. What is the current balance on the note you are selling?
8. What is the interest rate?
9. What is the payment amount on your note?
10. Is there a maturity date or balloon payment date on the note?
11. Describe the payment history.
12. Are the taxes and insurance on the property current?
13. Is the note payor’s credit good, bad or ugly?

The "stronger" your note is on these 13 factors, the more money your note will bring should you want to sell it for cash.

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