Estimate on Selling Note?

[Account Closed]

Hi all-

This is my first foray into selling a note - I have a waterfront lot in Burnet, TX and have an interested buyer who wants to seller finance. The terms are as follows:

Purchase Price: $55,000

Down Payment: $5,500

Note: $49,500

Interest: 7%

Property Value: $75,000

Buyer Credit: 2 buyers - one's score is 620, other's is 720

I'm wondering what price this note would bring if sold? I want to use a RMLO to package this note for sale, just trying to get an estimate on what it would bring. Thanks!

Ryan

[Mike Hartzog]

Note buyers are looking for yield, so a higher interest rate will reduce the amount of discount you would need to take. The other thing buyers will look for is security, and 90% LTV is definitely on the high side. A larger down payment would help. Also, if you hold the note for 6 months or more to establish a payment history, that will also help your resale price.