Updated about 15 years ago on . Most recent reply
Performing note
I'm holding a performing note in the $50K range at 7.5% interest with 1 year of seasoning and a balloon payment at the end of 15 years.
I have no way of knowing the credit score of the home owner. He's an active investor with multiple properties and uses a local management company. The property has been consistently rented and he makes his payments, but I have a feeling that his credit score is low because he's trying to buy as many properties as he can in this market. Is this a serious problem for me if I try to sell the note?
I would like to sell this note and free up the cash to invest in something else.
What is the best way to do this? Should I list it on one of those web sites or work with an individual? What would be a reasonable discount in this case?
I appreciate any advice from experienced investors.
Most Popular Reply
If it has 180 payments, and is scheduled for 180 payments, then there should be no balloon, as the final payment should put you at $0 balance.
Credit will get pulled, if not by you then by the potential note investor.