Note buying question

[Joel Owens]

Ok here is the deal. Seller wants to sell but cannot take a hit. Property is a multifamily value add deal. They have perfect credit so do not want to do short sale,etc.

The price just needs to be a little cheaper but not much cheaper. Currently the interest rate as in indexed rate at 3%.

My thought is the note could be bought out even performing at 80 to 90 cents of value. The bank that is currently only getting 3% could re-lend at a higher return and not be stuck in the note.

I am not a note expert but my understanding is performing notes even trade for less than 100% of full value. The sellers currently have owner financed their property so they do not hold title.

If the current owner of the property wants to take out underlying former owners mortgage that was wrapped is this possible??

Could have equity partner or buyer buys the underlying mortgage note at a discount then forgives balance to the owner that wrapped.

Example:

Former owner who wrapped and now does not have title.

Owes 250,000 note on a quad 4 unit that still needs work.

Buyer that wants to purchase from current title and wrap owner could buy the note at say 85% of value. 212,500

The purchases from wrap owner at 300,000 and forgives the difference to the past owner.Wrapped owner would do this as they just want to move on and the person with the wrap does as well.

Thoughts......