• Single Family Residences
• Duplexes / Tri-Plexes
• Condos / Town Homes
• Apartment Buildings / Multi-Family Properties
• Commercial Buildings
• Land (either unimproved, meaning no utilities; and also Improved Land, meaning utilities)

Our minimum note balance that will consider purchasing is $35,000.00. Our maximum real estate note balance is $1,000,000.00.

Do you purchase notes in second position?

NO. We do not purchase notes that are in second or third position due their high risk.

Do you purchase Non-Seasoned notes or do Simultaneous Closings?

NO. Due to recent changes in the secondary mortgage market, we do not purchase non-seasoned notes or do simultaneous closings. The note seller must have held title to the subject property for twelve (12) months or longer, and had at least one or more payments made on the note. Please contact Steven W. Hammons, President & CEO, toll free at 1-800-264-1056 - Ext. 101 regarding how to properly structure a NEW note for maximum potential cash out.

Do you purchase “no money down” notes?

NO. We DO NOT purchase notes with “no money down” terms. The note payor must have an equity interest in the note and the property. We do not know any investors in today's market who purchase “no money down” notes. We require 20% equity by the payor/buyer either as 20% cash, or 10% cash and the seller take back a 10% second mortgage note.

Will I receive the full price of my note in cash?

No. No note investor pays Par or Face Value for a real estate note because the value of each dollar decreases as the note ages. On each type of note we have a predetermined amount of return that we are looking for on our investment. This return is often called a Yield On Investment (YOI). Therefore, the face value of your note will be "discounted" based the type of YOI your note has.

Remember... the higher the interest rate, the smaller the discount... the shorter the amortization period, the smaller the discount... the longer the balloon period, the small the discount.

Okay... what will you pay for my note?

There are many things to consider when purchasing a mortgage note. We purchase notes on single family residences, duplexes, town homes, condos, multi-family properties, unimproved land, land with improvements (meaning utilities in place), and various-use commercial properties. Each of these types of notes has a different risk associated with it.

For example, a note on a single family residence is a much better investment for us compared to a note on unimproved land. The reason is because if we had to foreclose on the home we could (on average) sell it much faster than the unimproved land.

Once we categorize what type of note we are quoting on (single family residence, land, etc.) we then look at 8 key factors to determine the exact pay price on the note:

• The amount of equity in the property or Loan-To_value (LTV)
• The amount of the down payment on the note (15-20%+ down is best)**
• The amount of seasoning on the note (how long have you been collecting payments)
• Is the note "performing" (are payments being made on time and not behind)
• The interest rate on the note (the higher, the better)
• The term of the note (how many months is it amortized - the shorter, the better)
• Is there a Balloon Payment & when is it due (balloon payments due in less than 5 years are hard to fund)
• The credit of the payor or buyer

How important is the credit of the payor?

In today's economic climate, the credit of the payor/buyer is very important in determining the purchase price on a note. Usually when we quote you we don't know the payor's credit, and we will base our quote "Subject to" the information that you provide us. In today's seller-financed mortgage market, the payor's FICO score must average 650 or higher (680+ in some geographic areas) for owner-occupied properties... 700+ for non-owner occupied.

If we find the credit to be different, then we reserve the right to change our quote downwards, or withdraw it. This is usually done once our preliminary quote is accepted.

What if I have an underlying mortgage loan that needs to be paid off?

If you have an underlying loan that must be paid off, there must be enough equity between the current note balance and the underlying loan pay-off balance.

Typically this equity needs to be 35% or higher to allow for discounting the note or it will not work for, you, the note holder. We must pay off the underlying loan to be in a First Lien Position, and whatever cash is left after our discount would go to you. We will require a Pay-Off Letter from your lender.

What paperwork or documents will I need to submit when I sell my note?

The following documents will be required to be submitted for us to perform our due diligence:

• Promissory Note: This is the actual document that we will be purchasing. This document states the terms of the note, including interest rate, length of payments, and monthly payment.



• The Mortgage, Deed of Trust, Trust Deed, Contract or Land Contract: This is a recorded document that secures the property as collateral for the loan. Each state is different.



• Title Insurance Policy: An insurance policy issued by a Title Company that guarantees that a property is free of any liens.



• Settlement Statement: This document was issued at closing and shows the down payment amount on the property as well as taxes paid, etc.



• Proof of Insurance: This is usually in the form of a Declaration Page. This shows the dates of coverage on the property and the covered amount.



• Verification of outstanding balance: This is the current payoff balance on the note. We will request an amortization schedule.



• The payor's name, address, and social security number: We check the credit history on all note payor(s).



• Note Seller's (your) Social Security number: This is for tax-reporting purposes only.



• Proof of payment history: This can be in the form of canceled checks, check stubs, accountant's ledger book, etc. The purpose of this is to show punctuality of the payments.



• Copies of underlying notes and balances (if applicable): We will need to pay off this note if there is one. We need the balance with a payoff date and who to pay off.



• Signed Mortgage Purchase Agreement: This agreement must be signed by the note seller before we will begin processing the transaction. We will be ordering a title and appraisal and we want to make sure the note seller is obligated by a binding contract to sell his/her mortgage note to us.