BiggerPockets

Let me give you an example that actually happened. An investor I work with had several properties for sale. One of those properties was here in Lake St. Louis and was a foreclosure house. He had it on the market for seven months. Two contracts were placed on the home, but neither buyer could qualify for the loan. He lowered the price (to me that's an absolute no-no) and he still couldn't sell it. I contacted him through his advertising and here's what we did.

We set the home back to the original asking price, plus $5,000.00 more. He advertised the home as "for sale with owner financing." What did that do for him? It broadened his buyer base.

Let's say there are 35 buyers interested in homes at LSL. Five of them can qualify for a loan. There were 8 other houses within a mile competing for those five buyers. There are 30 other buyers that couldn't get a good loan or loan at all even though they may have a credit rating as high as 650. "That ain't going to cut it with the banks." By providing seller financing and willing to create a promissory real estate note, he opened the door to 30 other buyers. Those buyers are willing to pay more because they couldn't get a conventional home loan. Not only that, 4 of the 30 were competing for this home. So it was worth even more dollars.

He sold the house within 2 months. Where do I come in? I buy promissory notes or I find an investor who wants the note. I have over 300 investors I work with. On the day he closed with the buyer, he did a "simultaneous closing." He closed with the buyer and an investor closed with him that same day for the note. The investor can't change the terms of the note so, the buyer's happy, the seller got more money faster and the investor who bought the note got a good cash flow. Everyone's happy.

Maybe we can work together to turn your investment dollars around faster.
[EMAIL REMOVED]

Thanks
KJ McNeil

There is really no certain %. All notes are scored by factors in the note. Term, what was are is the down payment at the time it was created. Interest rate,payers credit score etc. All these factors combined to create that score.

Hey Bryan,
The factors I listed are just some of the scoring info. I use a note analysis from to gather all the info. Here it is:

Note Finder Name: _________________________________________ Page No.:_________________
Note Analysis Worksheet
Note Seller Name: _______________________________________ Date: _______________________
Address: _______________________________________________ Phone #:_____________________

Property Information
Property Address: ____________________________________________________________________
Type of Property: __________________________________ Owner Occupied?: ________________
Sales Price: $______________________________________ Date of Sale: ______________________
Property Value: $_________ Established By - Sale/Other: ________ Date: __________________
1st loan Amount: $_____________ Monthly Pmt: $____________ New / Assumed
2nd loan Amount: $_____________ Monthly Pmt: $____________ New / Assumed
Down Pmt Amount: $_____________ LTV: _______% ITV: _______%

Note Information
Original Amount: $_________________ Balance: $________________ As of:_________________
Interest Rate: _______% Payment Amount: $_________ Date of 1st Payment: _______________
Original Length: _______________ mos. Type: Amort, I/O, Other __________________________
Number of Payments Made: _________________ Number Remaining:_______________________
Are the payments on time?: __________ What day of the month are they due?: ____________
Balloon Payments (if any): $__________________ Balloon payment due date: _______________
Are there any clauses: ________________________________________________________________

Seller Information
Note Seller's Motivation: ______________________________________________________________
When Needs To Close: ______________________ Received other offers?: $_________________
What does the Payor do for a living? ___________________________________________________
Payor's credit score: __________________________________________________________________
Is there anything else I should know about this note?: __________________________________
______________________________________________________________________________________

Bryan, you can go to my profile and get my phone number and or e-mail address. If your interested in doing something with this note, contact me.

Thanks, Ken

Bryan,
Yes, you can do a simultaneous closing. The terms you laid out before are fine. Just be aware, the more the down payment, the better. 8% to 10% is great. 5 to 15 years is good. the shorter the term, the better.

Seasoning is always good, but if the note is structured right, you won't lose anything by doing a "SC".