What is the average price of non performing notes in california?

Question

I've been a buy and hold investor for 20 years. I'm tired of landlord issues and want to consider being a lender. Id like to purchase non performing notes, help the homeowner turn the loan to performing status and sell the loan as performing. Does someone know the average % spread and how can one get top dollar reselling the now performing note?

Logan Hassinger · Answer

@Robert Whitfield

In general, you could expect something around 80% of the unpaid balance or a a resale amount that provides a 12%-15% yield to the purchaser.

however this will vary widely depending on many factors; Home value, loan terms, location, loan balance, loan term remaining, etc.

For example, I purchased a 283k bank originated note in Salinas CA (this is very different when compared to an owner financed note) for 222k.

What is the average price of non performing notes in california?

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