Negotiating on a note to sell...
I am negotiation on a property with sellers to create a note for $70k, 5% interest on a 30 yr amm, 10 year balloon. Property is a duplex in NE Ohio. Needs about $15k in repairs I will be doing this fall. After repair monthly revenue will be $1400, ARV will be about $120k.
Is this a note buyers would be interested in?
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Is it a mortgage or a contract for deed? How seasoned would the note be when you try to sell?
Most note investors wouldn't buy a performing note without a yield of 7-8%+, which means you'll have to offer a discount on this note.
If this is a property you're buying and getting seller financing on, good job. Stay with the low interest rate. Would the note holders be looking to sell it? Are you trying to facilitate that for them?
If you are getting seller financing, make sure you include in the contract that you have first right of refusal to purchase the note if the note holders try to sell. That way, if they decide to sell, you can potentially buy your own note at a discount.