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How to Get Your Note Sold on NoteMarketPlace

| Blog Posts | August 12, 2013

A lot of people ask us, “What can I do to get the best price for my note and the best terms?”

The most important thing to do is make sure you have all the information available to the prospective buyer.  The easier you make it for the buyer, the more quickly the can make a decision.  Specifically, here is what you should have readily available:

  1. Promissory Note
  2.  Deed of Trust/Mortgage
  3. Preliminary Title Report
  4. HUD 1 Closing State
  5. Payment History
  6. Title Insurance Policy
  7. Senior Encumbrance Information(If Applicable)
    1. Note
    2. Deed of Trust
    3. NOD (If Applicable)
    4. Payment History
  8. Property tax Statement
  9. Property Insurance Policy
  10. Phase 1 Report, If Available
  11. Phase II Report, If Available
  12. Appraisal (If Available)
  13. Broker Price Opinion (BPO) If Available
  14. Recent Payment Demand Letters to Borrower(If Applicable)
  15. Notice of Default (NOD) (If applicable)
  16. Notice of Trustee’s Sale (NOS) If Applicable

Additionally, the other key aspect of selling a note is knowing the market and what the market is willing to pay for a 1st or a 2nd.  For performing notes, one of best ways to do this is to look at the yield.  E.g. at the time of this writing, the expected yield on a performing 2nd with plenty of equity cushion is about 12.5%.  So to figure out what you might sell it for, you could take your annual interest payments and divide them by .125 to determine a price.  Obviously this changes depending on the deal, but there is no question that pricing your note right is key to attracting interested buyers.

Finally, respond to inquiries promptly.  If someone has an interest, get back to them asap.  You may also want to hire a professional  handle the marketing and transaction process for you.

Good Luck!!

NoteMarketPlace Team


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