Updated about 14 years ago on . Most recent reply
Buying Notes
I am trying to understand how note buying works. I was looking at a non-performing note for sale and the unpaid balance is $79,300. The property value is about $10,000 and the seller wants $2,000 for the note. Is this a good deal? I'm confused as to what happens with the unpaid balance and if it matters if I wholesale the deal. I would really appreciate some clarity. Thank you very much.
Most Popular Reply
Run away from this one ... FAST. You're most likely going to end up paying more than the $10K property value, with maintenance and repairs, insurance, foreclosure, etc. In note buying, it is critical to have an equity buffer so that you can tolerate the inevitable surprises.