Re: sell and "paper out"

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Posted by Michael Morrongiello on May 02, 2008 at 19:17:32:

In Reply to: sell and posted by Dave D CO. on May 02, 2008 at 18:10:21:

Dave:
I would not sell to an investor in this marketplace, especially one with blemished credit if I could avoid it...far better to sell to an owner user who will occupy this home Vs an investor.

All of the other terms of the sale are good with the exception of the interest rate. That interest rate could be a bit higher as a trade off you could offer to move the ballon payment slightly farther out.

The key things being carefully looked at these days are;

1) LTV - the lower the better

2) Payors credit - best to be 650+

3) Note coupon rate (suggest 9% -11%)

4) Amortizing debt Vs interest only

5) Seasoning is look upon more favorably than an unproven note with no payment history established

Selling and "papering" out is still a viable option to move inventory in todays sluggish buyers market. If you adhered to the above guidelines you will fine.

Best to your success;
Michael Morrongiello
www.sunvestinc.com


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