Note Basics 101- Selling Your Mortgage Note

Written by Frederick B Webb Jr.

A basic understanding of what note investors look for when buying notes.

The first thing you want to understand arerepparttar basic categories of mortgage notes.

They are: Residential, Mobile Home, Commercial and Vacant Land notes.

Recognize that in certain parts ofrepparttar 148617 country they are referred to using slightly different terms but nonetheless, they can all be categorized as one ofrepparttar 148618 above mentioned.

Residential Notes

are notes created fromrepparttar 148619 sale of residential properties, like: Houses, Condominiums, Townhomes and 1-4 family unit buildings.

Mobile Home Notes

are promissory notes secured by a mobile home andrepparttar 148620 land it is on.

Commercial Notes

are notes originating withrepparttar 148621 sale of any type of commercial business property, like: offices, apartments, industrial properties and warehouses.

Vacant Land Notes

are notes on developed or undeveloped land, or land not designated as a specific use property such as:

farm land, waste storage, does not include land that has been improved for development and building.

Now that we've coveredrepparttar 148622 types of notes there are, let's keep it simple and move on...

The next set of basics we need to cover are:

*What determinesrepparttar 148623 value of your note?*

Knowingrepparttar 148624 factors that determinerepparttar 148625 value of your note will save you a lot of time when it comes down to entertainingrepparttar 148626 offers you'll receive from note investors.

*What payout options fit your situation?*

Not everyone needs to cash in their total note, so depending on your situation, you may find that you wish to structure a purchase with options.

Note Basics 101:

What determinesrepparttar 148627 value of your note?

Type of property securingrepparttar 148628 note:

The more securerepparttar 148629 collateral,repparttar 148630 more valuablerepparttar 148631 note.

Owner-occupied, single family residences are more secure than rental property, becauserepparttar 148632 payor is less likely to default on payments and risk losingrepparttar 148633 roof over his/her head.

Unimproved land is risky, although some ofrepparttar 148634 investors in our network do specialize in this area.

The owner has paid less for it, and it is draining cash inrepparttar 148635 form of property taxes and other expenses.

The owner of an unimproved lot may decide it is cheaper and easier to default on payments and loserepparttar 148636 lot than it is to sell it.

Down Payment amount:

Consider percentage of sale price as well as actual dollar amount. The morerepparttar 148637 buyer has invested inrepparttar 148638 property inrepparttar 148639 form of a down payment,repparttar 148640 less likely he/she is to "walk".

Terms ofrepparttar 148641 note:

A shorter amortization (term) on a note also will bring a higher bid from a private mortgage buyer.

Shorter term notes have higher monthly payments, and higher monthly payments generate higher bids.

Payment history ofrepparttar 148642 note:

Payment history is a good indicator that payor is credit worthy.

Timeliness of Payments:

Reliability is also a good indicator that payor is a good risk for an investor.


The more cashrepparttar 148643 payor has invested inrepparttar 148644 property,repparttar 148645 less likely he/she will be to default on payments.

Position of note:

1st, 2nd, or 3rd position note. It's a rare find to get an investor willing to take a third position note seriously.

Interest rate onrepparttar 148646 note:

The higherrepparttar 148647 interest rate,repparttar 148648 morerepparttar 148649 investors will offer forrepparttar 148650 note.

The ideal situation is when your note's interest rate is 10% or higher.

Location of property:

Ifrepparttar 148651 property is in a good location, it will be more saleable inrepparttar 148652 eventrepparttar 148653 payor "walks".

Owner ofrepparttar 148654 property:

The investors will considerrepparttar 148655 payor's credit history in general as well asrepparttar 148656 payment history onrepparttar 148657 note.

Success Trading: More Basic Terminology for New Traders

Written by Chuck Cox

One important aspect of tradingrepparttar markets is to understand how to feel it’s overall pulse. Inrepparttar 148600 stock market, this is measured by measuringrepparttar 148601 movements of selected stocks across various sectors to let us know howrepparttar 148602 market is doing in general. A gentleman byrepparttar 148603 name of Dow came up with this concept and today we still use his Dow Index forrepparttar 148604 purpose of measuringrepparttar 148605 market’s pulse. There are also several others out there, but another popular index of mostly technical stocks isrepparttar 148606 NASDAQ.

Bull Market – This describes a market whererepparttar 148607 overall market is rising. Typically, this is measured byrepparttar 148608 NASDAQ andrepparttar 148609 Dow Indexes. Experts recommend that you only buy during Bull Markets becauserepparttar 148610 odds are much more in your favor – this is true, but keep in mind there are plenty of stocks that plummet during Bull Markets too.

Bear Market – This describes a market whererepparttar 148611 overall market is dropping. As with Bull Markets, again we measured this byrepparttar 148612 NASDAQ andrepparttar 148613 Dow Indexes. Experts recommend that you only sell short during Bear Markets becauserepparttar 148614 odds are much more in your favor – this is true, but keep in mind there are plenty of stocks that rise during Bear Markets too.

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