I recently sold a triplex via seller finance deal. The buyer had a great credit score, payment history, etc, no current concerns for payment defaults. We jumped through all the hoops with title, contract, etc.
I am thinking about selling this note, and I’m curious what a fair (perhaps competitive) price would be. Here’s some of the numbers:
– Note is 30 year at 10%.
– Buyer put $60k down on total sale price of $250k
– LTV of note is around $432k
– I bought the home for $290k
Additionally- what are some strategies for finding buyers of notes? Any tips or tricks to vetting them?
How much can I sell my seller financed note for?
byu/alekseyweyman inrealestateinvesting
Posted by alekseyweyman
5 Comments
None of these numbers make sense.
Did you lose 40 K selling the property? (That’s fine if so) Is the loan for 190K,(You say 60K down 250k total sale price)? Why is your ltv such a high number? Loan to value is usually expressed as a percentage. Like 60% LTV…. Is the loan “Interest only” or is it amortized for the 30 years?
To confirm the sake price was 250k, the Buyer put down 60k and the actual Note is for 190k @ 10% with a 30yr AM? Payment of $1,667.39 per month?
The challenge is that everyone values Notes differently. An Institutional Buyer versus an Individual buying Notes versus someone buying Notes for a Self Directed investment account.
The question I would ask is “why do you want to get rid of a good Note?” and then proceed from there.
You can look at a site such as Paper Source Online or if you have a local Self-Directed IRA Custodian they may have Note Buyers who are clients.
If you sell the entire Note your gain will be due immediately. If you need only a little money you could sell a partial interest in the Note. If what you want is expensive you may be able to trade the Note for what you want.
Plenty of solutions that all depend upon your reasons for wanting to go to cash.
Given the strong down payment & 10% rate in this market, expect around $160k–$175k (85-92 cents on the dollar) because it’s brand new.
Check out Paperstac to find serious buyers; never pay upfront fees when vetting them! Good luck!
What does LTV of $432k mean?
How many months are left?
How much are you looking to get?
What you paid for it is irrelevant.
Do you have a free & clear title to it or do you still owe on it?
Where is it located?