Calculating Note Investments Using The 50-50 Partial

When buying real estate notes you will surely encounter a seller that flat-out refuses to take a discount.  You can try explaining the time value of money until you turn blue in the face or… provide a simple alternative. Offer to buy half the number of remaining payments for half the balance. Not only is the seller happy, the investor can receive an increased yield. Intrigued? Wondering how this all works?  Watch this step-by-step video walk through of the 50-50 Partial from our How To … [Read more...]

Calculating Early Payoff On A Partial Note Purchase Using TValue Software

One of the wonders of the note business is the ability to invest in notes with little or no cash of your own using the partial or tail-end structure.  But what happens when a note pays off early?  This week's guest author, Markus Mollica with TimeValue Software, explains how to calculate an early payoff on a partial note purchase using their TValue amortization software. Let’s say that my goal is to build cash flows for future retirement. However, over the next several years, I want to not … [Read more...]

Need Help Determining A Note Investing Yield

Recently a private note investor contacted us to get some guidance on calculating a yield on a note they were buying. While payments were current there was a past due balloon they were looking to extend along with an additional advance. This is a creative workout solution to a common balloon problem and the investor kindly agreed to let us share it here with our readers. The Question on Calculating Yield: I mainly broker hard money loans and buy existing notes, but this one deal has me … [Read more...]

Does This Financial Calculator Make Me Look Old?

If you plan to buy mortgages or want to take your note broker business to the next level then learning your way around a financial calculator is a big plus. As many of you know, Fred and I are a house divided when it comes to...  Choosing the Best Financial Calculator. Fred likes the Texas Instrument Financial Analyst and I am a die-hard HP12C user.  Recently a fellow HP calculator fan read that past article and wrote in with some great information. In the process I found out my … [Read more...]

Free Financial Calculator for Cash Flow Notes!

Is the best financial calculator now free? If you struggle with calculating cash flow notes on the HP12C , HP10B, or the Texas Instrument BAII then you will want to check out this great offer! Advanced Seller Data Services (ASDS), a leading provider of marketing lists for seller carried notes, has released a series of free financial tools for note brokers and note buyers. Here's a sneak peak at the power behind these calculators from a recent ASDS press release: Tool #1 - A Financial … [Read more...]

Buying Mortgage Notes: 7 Tips for Calculating Cash Flow Notes

If you plan on selling or buying mortgage notes the pricing will eventually come down to some important cash flow calculations.  If you get cold chills or high school flash backs thinking about math you can always leave the number crunching to the note buyers. However, I challenge you to get outside your comfort zone and give these exercises a try. Why? Well knowledge is power and you will be able to know if you are getting a fair (or not so fair) deal when selling mortgage notes. … [Read more...]

Calculating Cash Flow Notes and a Contest!

I have written before about how note buyers accelerate payments on cash flow notes. One such strategy was the Double Your Payment/Cut The Interest Rate in Half. Another method is to simply go for an Early Payment With Incentive. To this day, the following situation is still my favorite example of this method. It was late December and we were looking at a small note with a $10,000 balance. The payment was only $132.15 per month with a 10% interest rate and 120 payments left. The note … [Read more...]