Do Some Investors Pay Par Pricing When Buying Mortgage Notes?

Recently we received a question in the Finding Cash Flow Notes training course related to “par pricing” or "discount" when buying mortgage notes. First off, here is the Note Broker Question… Hello and thank you two for all your help. My question is why would a note investor pay par for a note? I’ve been speaking with a person who helps their clients use OWC (Owner Will Carry). I was informed they are working with a note investor that is willing to buy a note for par. I don’t understand … [Read more...]

Full or Partial Mortgage Sale? It’s All Dollars and “Sense”

Deciding whether or not to sell your mortgage note is easier when someone simply offers you a “Full” purchase. In addition to being a straightforward buyout of all the remaining payments, it also makes it easy to determine what you are receiving. For example, if you are offered $85,316 for a $100,000 balance mortgage note, you are selling the note at a $14,684 discount. That may sound like a lot, but you now have $85,316 up front rather than waiting over time to collect payments. The part that … [Read more...]

Real Deal #144 – Mixed-Use in Oklahoma

Welcome to Real Deals!  It’s always easier to learn from real life so here we share information from actual owner financed transactions. The creation of a note does not always follow a straight path.  Often the terms are modified to fit the needs of the transaction.  This note in Oklahoma started out as a sale of business, then included real estate, and was eventually modified to meet the repayment needs of the buyer. … [Read more...]