Purchasing a non-performing Note

5 Replies

Does anyone have any recommendations on how to go about purchasing a non-performing Note from a lender utilizing financing in some way? We don't have quite enough cash to buy the Note outright but it's a good deal and we're trying to identify if there are 'note lenders' out there or what to complete the transaction. Any advice is appreciated. Thank you.

@Logan Hassinger

 Unfortunately I do not have any contacts or individuals that I can tap for true Private Money. Are there private money institutions or organizations out there I can present the proposal to? That or capital partners who invest in these sort of assets?

@Logan Hassinger

Another question. With your experience what do you think is a fair market price for a non-performing note? I’ve seen things ranging from 50-60 cents on the dollar all the way up to 90 and down to 20. Is there an average I should work with when making my offer?

@Jarrod Miracle

I’m not aware of any institutions lending on notes, performing or nonperforming. This is a cash rich business and without it, there isn’t much you can do, whether your own funds or private capital. 

As for pricing on nonperforming paper, should typically be around 50% discount but when there’s significant equity then the discount will decrease. Each note price is different and no two notes are the same. 

@Jarrod Miracle while you certainly can find lenders that will lend against a note, it's on notes that you own.  But the best place to get these types of scenarios answered is in the form answered "Tax Liens, Notes, Paper & Cash Flows".  Try that form for answers about investing in notes.

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