BiggerPockets

One thought is that 10% down on commercial is rare right now, If it cash flows well, you might go with a higher interest rate or purchase price.

thanks for the responses guys..my plan is to sell the note....what are performing notes going for these days if i have it seasoned a few months?? a year?? what about a simeltaneous close between buyer, me, and note purchaser?? can you recommend a 3rd party servicer??

We have developed a private equity facility that discounts seller notes at closing. Up to 85% of face value available. Accepting most credit buyers. This may be a solution for you.

When you say "hud is eliminating seller financing" I'm guessing you are referring to the current legistlation that would limit the number of owner financed deals without a mortgage license. If this is your first deal, you should be ok.

Hi, first, the SAFE Act covers 1-4 family properties, not commercial loans. The CPFA will have a wide swath to cut, but it appears commercial loans by private individuals is not in the path.

If I were buying your note, I would pay more for the note if my yield were higher and able to reinvest that money. The best way to do that is to have a balloon payment in three to five years. So, in my opinon, your 5 year balloon is just right. Secondly, 9% is probably as easy to get as 8.5% and it will give you room to drop the rate if you need to to make the deal.
You really need to look into having the loan serviced, I've ritten about that here several times, it will provide verifications for refinancing as well as selling the note. Servicing takes care of many headaches and the buyer can pay the fee.

Solidreturns has they saying correct, but a note that has a balloon that can not be met is what????

It's a repricing opportunity! Maybe fees to redo the deal for the servicer, certainly the rate, you can shorten the amortization, take interest only, do just about anything you like, it's like new business. If the note had been paid, that money would be reinvested in other notes, please save me the trouble, allow me to modify the existing note and earn the fees and rates I would have under the new business. This is a commercial deal, all is fair in love and commercial deals! Good luck, Bill

Dave, Please let us know how your client's refund goes. I'm sure that it will be of interest to all of us. You may want to check out this thread, too!

http://www.biggerpockets.com/forums/92/topics/52328-how-about-this-idea-for-bp-please-give-input-?page=4

You've been a member for over a year now and I hope to here from you more! Good luck!
Bill

George, maybe this should go to another thread and get all that straightened out, wadasay?

I was just made aware of this thread today.

Dave Bashir, my email address has always been in my profile and there was nothing preventing you from contacting me anytime. As you know there is always two sides to every story. If you wish to learn the facts just send me an email and I will respond immediately.

The FACTS are that I also was charged $900 + expenses of sending funds to him under false promises. I was promised repeatedly I would receive a full refund on May 18th within 30 days. He's since changed his phone number and address, gone into hiding and removed all contact info from his Web site. Despite repeated claims that checks have been sent and wires, no money has ever been returned.

I have now filed a complaint with his precious BBB, and will be filing with the State's Attorney and the Office of Financial Regulation for his fraudulent activities.

Those are the facts, and I have the electronic backup to prove these statements. Draw your own conclusions.