Posted by Bud Branstetter on October 27, 1998 at 12:46:35:
In Reply to: How do you know what is a good note posted by Rebecca on October 27, 1998 at 07:32:50:
Ahh..The good note. That is one where they continue to pay as agreed. And if they don't there is more money to be made. There are guidelines like no more than a certain percentage of the value, a payment history, or documentation that they have the capability to pay. The return on yield is what you want it to be. In todays market buyers are willing to go as low as the 8-9% range for good notes. 12-14% for less desirable notes. Others like John like to go to the source holder of the note where much higher returns can be made.
I may not be the one to judge a good note as I just got a 60K+ judgement against an investor on a note went bad. In this case he has a bunch of other SFR that I expect to collect from.