Full note purchase
The advantage of selling your
entire note is cash in hand, as you know present value of a dollar far exceed
the future value. In addition, selling
the entire note relieves the Note Holder of payment collection.
Scenario:
Sale of a 30 year note after receiving 90
monthly payments (7.5 years)
|
Terms
|
30 year @ 9.5% interest
|
|
Total Purchase Price
|
$165,000
|
|
Down Payment
|
$15,000
|
|
Total Mortgage
|
$150,000
|
|
Monthly P&I
|
$1,261
|
|
90 Payments Collected
|
$113,490
|
|
Sale
of 270 Payments
|
$117,537
|
Total collected from Transaction
|
Down Payment
|
$ 15,000
|
|
90 Payments Collected
|
$113,490
|
|
Sale
of 270 Payments
|
$117,537
|
|
Total Paid to Note Holder
|
$246,027
|
Top of Page
Partial note purchase
The advantage to selling a portion
of your mortgage notes is access to needed cash while maintaining a future
income stream. Of course, the future
income stream can be sold at any time.
Partial purchases are constructed to meet the Note Holder’s needs.
Scenario:
Partial Sale of a 30 year note after receiving 90
monthly payments (7.5 years)
|
Terms
|
30 year @ 9.5% interest
|
|
Total Purchase Price
|
$165,000
|
|
Down Payment
|
$15,000
|
|
Total Mortgage
|
$150,000
|
|
Monthly P&I
|
$1,261
|
|
90 Payments Collected
|
$113,490
|
|
Sale
of 180 Payments
|
$105,068
|
|
90 Future Payments to Note Holder
|
$113,490
|
Total collected from Transaction
|
Down Payment
|
$ 15,000
|
|
90 Payments Collected
|
$113,490
|
|
Sale
of 180 Payments
|
$105,068
|
|
90 Future Payments to Note Holder
|
$113,490
|
|
Total Paid to Note Holder
|
$347,048
|
 Request A Quote
Top of Page
|
Receive real estate financing strategies, deal-making insights and current rates with our newsletter:
