Down Payment Amount
More is better, 20% or more is ideal, Investors feel better when the homeowner has skin in the game.
Interest Rate
Do Not write a 0% Interest Rate Note; Investors need a good yield ( 8 – 15+%). They will discount the note more to achieve there yield goal.
Credit Score
The Payors Credit Score has a significant impact on what Investors are willing to pay, 620 is the standard minimum for most Investors.
Collateral
Real Estate is considered the safest collateral, but many investors will consider other items.
Position of your Note
A note in First Position is considered more valuable than a junior lien.
Quality of Payor
Does the payor have a good payment history and stable income to support payments?
Terms of the Note
Long-Term Notes are bad (30 Years), short 1 to 5-year terms are ideal. Investors want their money back quickly.
Title
Any underlying real estate should have clean Title and Title Insurance.
Liquidity
The Note Should be readily saleable as the Investor may want to sell quickly.
Co-Signers
More collateral security adds value to the note.
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