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Posted by Darin Heath on July 11, 2002 at 00:38:35:

Let me start by saying - "I'm really new to this!" All I have done so far is place "Thrifty Dime" type ads in a few papers. I received my first call from a prospective seller tonight. I was excited at first until I found out more. Here are the problems with it so far as I see it.
1. It's a second. This couple I talked to loaned $8000 to another couple to help with thier down payment. The couple who own the home put down $8000 as well on a $160,000 home. There is collatoral I guess since they are on the deed until they are paid back the $8000, but I know some investors frown at seconds because of what can happen at foreclosure.
2. It's fairly new. The loan is only a year old so the LTV is going to be bad probably. The home owners have paid thier payments on time so far (both the mortgage and this secondary payment)for a year.
3. It's a small cash flow. What remains on it is 9 more years at $103 a month. 11,124 with interest remains. Most buyers don't deal with numbers this small, at least none I have come across yet.

These are obstacles as far as I know. I already explained to the note holder the time value of money, and I know they need the cash. I feel if they got 70-75% of the original $8000 they put out, they would be happy.
So guys, should I go ahead and tell them I can't find an investor? Or should I look elsewhere?
I don't plan on making more than a hundred or two on a note this small, and I would love to broker it just for the experience alone. But I don't know if there are buyers out there for cash flow like this...Am I wrong? And if so, a few pointers would be appreciated.

Thanks in advance..
Darin Heath

Follow Ups:

• Sorry, but... Paul Drummond 17:51:21 7/11/2002 (0)

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