Boston Note Land Contract offer

7 Replies

I have a Land Contract I just wrote beginning of this month. It's for a property in Lafayette, IN, 3 bed 1 bath alot of new stuff remodeled just before selling. The "note" is for 80k, 3k down @8.5% over 30 years with 10 year balloon. I didn't get a credit score but ran him though transunion smart move. He had 3 things in collection totalling $600 for phone and electric bills but nothing else. I really thought I was going to get a Fico score with the background check. So my question is what might I expect for an offer.  

They say they dont care that it has not seasoned. They contacted me not sure how they got my phone number.

Most investor's I work with in looking at a newly created note: would like to see more note seasoning of at least 3 payments made, a higher down payment of at least 10%, and the property value must be at the sale price or higher to make you a good offer on it. Just curious, how much of the UPB is BN offering you? 

Originally posted by @Ken Lashin :

Most investor's I work with in looking at a newly created note: would like to see more note seasoning of at least 3 payments made, a higher down payment of at least 10%, and the property value must be at the sale price or higher to make you a good offer on it. Just curious, how much of the UPB is BN offering you? 

 I am not sure what the offer is yet, I just sent over the details. I heard 6 months seasoning before so I was surpried too. I am curious as to how theybeven got my phone number. I sold a note this time last year but never reached out to them. I was curious what the going rate is so I know whether it's even a consideration or not.

The going rate is determined by what offers the investor a competitive yield based on other real estate note opportunities in the marketplace. There is no set rate, it's all based on the yield returns the investor wants acquire. The offers made vary among the many investor's out there today.

So, If I were you, I would shop your note around to get the best offer on it. That's what I do...Thanks.

Yes agreed. Need more seasoning. However there are people who also will buy new originated notes. I have done so in the past myself but obviously had seller accept a larger discount due to the increased risk of default.

Best of luck in all your endeavors

Originally posted by @Clint Moore :

I have a Land Contract I just wrote beginning of this month. It's for a property in Lafayette, IN, 3 bed 1 bath alot of new stuff remodeled just before selling. The "note" is for 80k, 3k down @8.5% over 30 years with 10 year balloon. I didn't get a credit score but ran him though transunion smart move. He had 3 things in collection totalling $600 for phone and electric bills but nothing else. I really thought I was going to get a Fico score with the background check. So my question is what might I expect for an offer.  

 I'm not sure what BN's investment terms or criteria are for Land Contracts, but the majority of the stuff I see for sale trades at 15%+ yield and 65% to 75% of UPB.  

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