Need Help In Calculating Note

[micheal1949]

I Have A Real Estate Note For $300,000.00. It Is For 30 Years At 8% Interest. I Want To Sell The Note. How Do I Calculate Its Value?

[Bill H]

In simple terms:

1. What is it's position, 1st, 2nd....that will have a lot to do with value.

2. What is the equity...loan to value...?

3. What is the seasoning...new...old, with good pay record?

4. How good is 8 percent in the long run...inflation is currently running at about 7 percent....so..over the long haul???

5. Most finanical calculators will give the future value of the $$$. If you have one, just read your instruction book, plug in the numbers and let it run.

6. Search out future value on google and see what comes up.

7. What do you REALLY expect to try to get for it?

Good Luck,

[herbster]

Michael, You don't, There's a lot more to it than what you gave us. The underwriters of a Note buying co. are going to know the credit of the buyer, the down payment, the location, and to see the note etc. I can do it for you or you can go direct to many Note Investor sites. Save a few bucks familly member and go direct. LOL Herbster

[Bill H]

Well put Herbster!

[micheal1949]

Thanks everyone. I appreciate the information.

[herbster]

Well thank you Bill, you seem to have a real good grip on it yourself and I believe you were replying the same time I was.
Michael- The most perfect Notes are only going to get 80% nowadays. A word of advice- determine how much cash you need now and only sell a portion of your Note to an Investor. i.e. sell the 1st 5 yrs. maybe. A Note Investor can help you with this. I highly reccomend Mike at sunvestinc.com
Herbster