How Are You Pricing or Valuing Owner-Financed Notes Today?

[Charles Kennedy]

Hi everyone,

I’ve been seeing more owner-financed and private mortgage notes being created lately, especially with higher interest rates and tighter bank lending. From what I’ve observed, note values seem to vary a lot depending on things like payment history, borrower credit, property type, and remaining term.

For those of you who’ve sold or evaluated notes, what factors have mattered most in determining value or discounts?
Also curious how much seasoning really impacts pricing in today’s market.

Looking forward to hearing different perspectives.