creating and selling notes on flip houses

[Michael Jones]

I understand the basics of note investing but with part of my business being to flip properties is there an avenue to buy, fix and put together an owner carry note to sell immediately and force an extra bit of profit out of each deal over that of just selling it on the mls? 

What kind of discount do note buyers offer with unseasoned notes? 

What kind of terms are most attractive to note buyers in order to get an aggressive offer in todays market? 

What pitfalls would potentially arise? 

Thanks for any input and the wealth of knowledge in this group. 

[David Putz]

@Michael Jones being in the institutional note space for over 10 years we just held a webinar, with panelists, on purchasing seller/owner finance. For us we buy based on yield/irr, if it is performing.

So the discount depends on a few things. What is the interest rate, what state is it in, how many payments are left, how much is the property worth and a few more data points. We have a full model that we use to price our assets at. Hope this helps.