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Get Your Note Buying Business Started

You are ready to start your note buying business and you are probably questioning what types of non-performing notes are for sale. Look at this example.

An Opportunity In Note Buying

Your Note Rate: 11.13%

Non Performing note balance: $62,957 payoff amount $66,885

Value of property: estimated $112-114,000 (value based on Zillow and the bank’s BPO) LTV 50%

Note Buying Exit

Here’s you scenario: You can purchase a $63K non performing note at a 50% LTV for $56K.

If I could get the borrowers defaulted mortgage refinanced – I could probably payoff my loan for the full $66,885 within 60 days.

You would around $12,000 on your $56K investment. Not bad for 2 months.

My return on my note buying investment would be 21% cash-on-cash, without even annualizing!

Note Buying – Exit Strategy 2

You can also reinstate the loan by having the borrower’s pay the loan current. A foreclosure notice may help you here.

Reinstating the defaulted mortgage would cost your borrower $4,000 to reinstate, plus a monthly payment of $574. Within 1 year, you will have received $11,000, a 19% return.

Assuming the borrower refinanced within 3 years, I’d amortize that return over 3 years and get a 14.6% return on my note buying investment.

And finally, I might even end up controlling the property, in which case I’d have a good amount of equity that I could tap into.

Many ways to skin the note buying cat…

The government will likely give a $15,000 for first time home buyers in order to revitalize the housing market. The Orlando condos market in recent months has seen some up tick in the sales due to low interest rates and prices declining for past year or two. This is the best condition for new home buyers since 2004.

Over 4,000 condos are currently listed with Multiple Listing Services of Orlando, Florida. Majority of these available inventories are foreclosures, short sales, and bank owned properties, which have driven down the sales prices. The majority of these condos sell for anywhere from $100,000 up to $120,000 making it a bargain.

There seems to be some optimism in the marketplace as the sales have increased over 42 percent from 2007 with over 137 Orlando condos changing ownership in the last month of 2008. The downside is that majority of these sales are happening in condos below the $100,000 prices level, far from the over $500,000 condos couple of years ago.

For all of 2008 the sales have declined 32 percent compared to 2007, majority these sales happening in the below $100,000 market. Many buyers have been on the sideline waiting for the prices to fall even more, but at these affordable prices you are seeing some buyers come back into the market.

With the recent turmoils in financial markets, many Orlando condos that have begun construction have stalled and many developers are in bankruptcy. But few condominium projects have come to market recently in Downtown Orlando. The Plaza and The Jackson have recently finished and new tenants are moving in although lot of the units are unoccupied.

According to some statistic, over 50 percent of condos in Orlando are in distress. Which mean they are bank owned or for short sales. With current low prices, buyers should have plenty of options to choose from with more condominiums coming to the market from new developments. You will see values never seen before.

Are you thinking about moving to Atlanta, Georgia? If your thinking about making this southern city a home, you should consider Atlanta condos. Condos are perfect for families and singles, with so many amenities one can find all they need right within the building. The weather is nice all year long and you do not have to worry about snow in the winter.

You can burn those ugly winter clothes if you buy a property here. And there are plenty of things to do. From Braves’ games to the CNN Museum to the hottest clubs in the world, you’ll never be bored in Atlanta. Even a quiet evening at home is enjoyable, especially when it’s all yours. Rent a movie, curl up on the couch, and enjoy another hot summer night. If you are considering Atlanta condos for sale, check out the following tips to make sure your property is to par.

Make sure you do plenty of research, credible and legitimate website now offer many listing with photos and detail information about the property. Compare prices in Zillow.com, stay away from comparable sales prices within certain sub markets. The prices can swing wildly depending on the neighborhood you choose. But most of all, make sure you visit the property and do a thorough walk around. Contract a Realtor if you need assistance and need some advices.

Visit your potential property in the evening. While Atlanta condos for sale may seem to be safe when the sun’s shining high overhead, things look a whole lot different at night. You’ll spot things you missed the first time.

With sales of Atlanta condo falling over 88 percent in the second half of the 2008, you sure will find bargains. Huge surge of new construction have over supplied the market in last few years and many developers have auctioned off the available condos at unbelievable bargains.

Prices are the lowest since early 2000′s, interest rate is at all time lows, and the federal government is offering $15,000 in first time buyer tax credit, you should not care about pre-construction deals anymore. There are plenty of deals and value in this market.

There is always a debate when home buyers have to decide on the merits of 15 or 30 year fixed mortgage rates. Many people wait until they are older before taking on the responsibility of a mortgage so an early payment of this large debt is an important issue to think about. In a situation as important as this time needs to be spent considering all the available options. Home buyers looking into this need to be assured their monthly payments will not increase.

It seems that some lenders are happy to offer deals that appear too good to be true and they usually are. The interest rate should remain the same for fixed rate mortgages until the loan is repaid. This is of great benefit for anyone that does not like surprises. Both my wife and I decided to research fixed rate mortgages when we started looking at homes for sale.

Having a realistic, sustainable monthly payment on our mortgage was important even though we wanted to pay off our debt as soon as possible. This meant we had to consider 30 year fixed rate mortgage plans as well as those of 15 years. The problem was that we weren’t very happy about having a mortgage close to when we both retired so it was our hope a 15 year fixed mortgage rate would still be available to us. We felt that there was a great deal of emphasis on paying the mortgage off early.

We thought about it long and hard and despite the pressure we decided to go with the 30 year loan plan. Although a number of things had to be pondered over, eventually the choice was made for us. Discovering my wife was having a baby was the most important reason. As she intended to raise our child at home we couldn’t rely on her financial income to the monthly expenditure. The problem we could see was the increased financial commitment on a monthly basis if we had opted for the 15 year fixed mortgage rate. We knew that it just wasn’t an option and the risk was too great. Despite the trepidation of having a longer term loan, it did reduce the repayments considerably.

We are also able to make extra payments throughout the year to make the principal shrink quicker. Those few extra payments also help reduce the number of years you have to pay the loan over. In the long term, this is a strategy well worth pursuing if you are able. Although we would have much preferred a loan with a 15 year fixed mortgage rate we had to take our needs and abilities into consideration. Anyway, everything worked out fine despite our hesitancy.