First attempt at buying a note

[Tracy Hanks]

Need advice and/or opinion on buying a note that is 2.5 yrs consistently performing note with the following factors:

• Buyer pays $2,150/mo

• Underlying mortgage $1,377.91/mo (current)

• Property value ~ $200k

• Underlying balance ~ $139,926

• Wrap balance ~ $174,936

Is this a good deal?

[Chris Seveney]

Quote from @Tracy Hanks:

Need advice and/or opinion on buying a note that is 2.5 yrs consistently performing note with the following factors:

• Buyer pays $2,150/mo

• Underlying mortgage $1,377.91/mo (current)

• Property value ~ $200k

• Underlying balance ~ $139,926

• Wrap balance ~ $174,936

Is this a good deal?

 What are you actually buying? You buying the wrapped mortage? What is the interest rate, what is the price you are paying? We buy a lot of notes but shy away from wraps as they can get complex especially in a default situation and in some states can get very hairy if a default

I would never recommend anyone buy a wrap for their first note.