Posted by John Behle on November 26, 2001 at 15:58:29:
In Reply to: Re: Note king... posted by James on November 24, 2001 at 23:21:36:
I only hear feedback about Russ and his service. I don't look to buy out of state notes or notes that have heavy competition. My yield requirements are higher than I could get through that service.
Feedback varies. Some have had some good success and others have had the "run around". That isn't a reflection of the service, but of the industry. I would not count on selling a note on the service and would be very careful about the potential buyers. It's a resource, but I don't believe someone should "bank" on it working for them.
There are two issues that get in the way. One is that the average note seller ...... cancel that..... there is no AVERAGE note seller and no AVERAGE note. A seller financed note is:
"A mortgage loan that was never processed or qualifed."
So, the processing and qualification has to be done in reverse. If you want to sell a note to a note buyer, there has to be a documentation of the note. Based on the first information and documents received, the funding source quotes a price. As information is gathered, sometimes the quote needs to be adjusted. This is natural, but new note sellers many times feel "kicked around" or even deceived. From a funding company standpoint, sometimes what happens is you find out the AAA credit buyer is actually in jail for murdering his last mortgage holder. Then the note seller wonders why you want to re-rate or not buy the note.
Some of the buyers out there are "Broke Brokers" with low chance of performing. Some are totally without funds or much experience and solely just trying to broker to someone else. Others are operating on a shoestring, but while they may have legitimate intent, they have low performance results. Some pretend to have funds or even be a "Mega Broker" yet still just broker to one of the large institutions.
As I understand, the only qualification for being on the funding list is paying the fees. Maybe when the service grows, there could be an assurance of qualified and capable buyers, but I don't believe that is the case at present.
So, I think the service has merit - provided there is caution, logic and due-diligence before trusting your future to a "buyer" that may or may not perform.
- Don't get me wrong... Jess 16:14:50 11/26/2001 (1)
- Re: Don't get me wrong... Philip Brown 18:13:29 1/15/2003 (0)