Why Are Mortgage Notes Discounted Anyway?

Written by Frederick B Webb Jr.

Continued from page 1


Let me give you an example:

You have a $50,000 note you need to sell. Although you could sell only a few payments orrepparttar whole note, for this example, let's say you wish to sellrepparttar 148619 whole note.

You do a search onrepparttar 148620 internet and find a long list of brokers hawking phrases at you like, We can get you top dollar for your note..." andrepparttar 148621 like.

So you choose one and give them basic information about your note so that they can give you a quote on what you could expect to receive for your note.

So,repparttar 148622 broker calls you back after speaking with an "actual investor" about your note. The investor has toldrepparttar 148623 broker that he'll pay, say $41,000 for your note.

Your broker says to you, "We can pay you $37,500 for your note.

He explainsrepparttar 148624 whole reason notes are discounted but never mentions that other $3,500 discount you had to take because of his broker fee.

So, without ever discussing fees, you just paid $3,500 to have a guy make a phone call on your behalf to an "actual note buyer/investor.

***A Smarter Way To Sell Your Note***

What I am about to reveal to you isrepparttar 148625 subject of many nasty emails I get from other brokers....angry brokers.

Angry because what I am about to tell you takes money out of their pockets and puts it back into yours.

All brokers are in possession of a "little black book" ofrepparttar 148626 "real note buyers and investors".

Private individuals mostly but it also includes institutional note buyers.

Check it out yourself. It's calledrepparttar 148627 $67 Solution! You can find and use it risk-free by going to: www.mortgagenotecash.com/directaccess.htm

Frederick Webb is a Certified Cash Flow Consultant and resident of Webb Funding Group, a small debt brokerage agency he runs with his wife, Kashita Webb.

For more information, visit: www.mortgagenotecash.com

Should You Accept A Full Purchase Offer For Your Note or Not?

Written by Frederick B Webb Jr.

Continued from page 1

 4. Split Payment. This is whenrepparttar investor purchases half ofrepparttar 148618 seller's monthly payment andrepparttar 148619 seller continues to receive income fromrepparttar 148620 other half.

 5. Balloon Only. The note investor, in this case, only purchasesrepparttar 148621 balloon due atrepparttar 148622 predetermined date onrepparttar 148623 promissory note.

This option works whenrepparttar 148624 seller needs some cash at closing but doesn't want to wait 30 years to collectrepparttar 148625 balance.

To illustrate, let's use this hypothetical situation:

 Mr. Jones holds a note on a property with a balance of $103,865.68. It is amortized over a period of 360 months (30 years), 10% interest with a monthly payment of $943.83.

 Now Mr. Jones gets an offer of $87,613 forrepparttar 148626 note on a full purchase option and is very disappointed.

He objects to this offer. So thenrepparttar 148627 note investor offers Mr. Jones $73,165.82 for a partial purchase ofrepparttar 148628 note whererepparttar 148629 investor buys 150 ofrepparttar 148630 300 payments remaining onrepparttar 148631 note. (1/2)

 Mr. Jones is pleased with this offer because he got a better price for selling only half ofrepparttar 148632 note. Do you see that?

Inrepparttar 148633 full purchase offer, half would only be a little over $43,000 usingrepparttar 148634 full purchase offer of $87,613.

Mr. Jones got a much better deal this way and he is stillrepparttar 148635 owner ofrepparttar 148636 150 remaining payments due to him fromrepparttar 148637 note.

 So, as you can see, deciding whether to accept a full purchase offer over a partial purchase offer is not always an easy decision to make...

if gettingrepparttar 148638 most money for your note is your primary concern.

Frederick Webb is a Certified Cash Flow Consultant and President of Webb Funding Group, a small debt brokerage firm he runs with his wife, Kashita Webb.

Get more information at: www.mortgagenotecash.com

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