Discount mortgages also known as buying and selling notes, is
a $400 billion industry. You can make a lot of money finding people
who want out of their notes and buying them and then selling them
at a higher price. Eventually you may get to the point where you
don't need to sell all the notes you buy and you can have a nice
steady income coming in. Just like a bank...nice !! In the real
estate links you'll notice a link to the www.notenetwork.com
you can buy and sell your notes on there.
Every note has a ranking score. Here below you can figure out
the ranking of your note. If it's of high appeal then you will
have a good chance of selling your note for close to mortgage
amount.
Note Ranking System
Each field assigns a point value to categories that corresponding
to the Mortgage Information Form information that beset defines
the subject mortgage. Write this point value in the appropriate
grade column. When completed, compare the total in the grade column
with the investor appeal scale.
| Field |
Point Value |
Grade |
| 1. Note Seller Motivation (Section 3 on Mortgage
Information form) |
|
|
| Under written agreement to sell |
20 |
|
| Express serious interest to sell |
10 |
|
| No contact with note seller |
-50 |
|
| 2. Acceptable Property Types (Section 4 on Mortgage
Information Form) |
|
|
| Single Family - Detached |
20 |
|
| Condo |
5 |
|
| Residential/Office Mixed Use |
5 |
|
| Multi-Family (more than 4 units) |
5 |
|
| Mobile home with land |
-10 |
|
| Building Lot |
-15 |
|
| Acreage |
-20 |
|
| 3. Occupancy (Section 5 on Mortgage Information
Form) |
|
|
| By owner |
20 |
|
| By tenant |
10 |
|
| Vacant |
-20 |
|
| 4. Lien Position (Section 6 on Mortgage Information
Form) |
|
|
| First Mortgage |
20 |
|
| Second Mortgage |
10 |
|
| Wrap Second |
-10 |
|
| Other |
-20 |
|
| 5. Property Value (Section 6 on Mortgage Information
Form) |
|
|
| Over $50,000 |
20 |
|
| Under $50,000 |
-20 |
|
| 6. Seasoning - Age of Mortgage (Section 6 on Mortgage
Information Form) |
|
|
| More than 24 months |
20 |
|
| 12-23 months |
10 |
|
| Less than 12 months |
-10 |
|
| New/buy at closing |
-20 |
|
| 7. Loan Balance |
|
|
| Under $20,000 |
-10 |
|
| $20,001-$100,000 |
20 |
|
| $100,001-$150,000 |
10 |
|
| 8. Geography (Section 5 on Mortgage Information
Form) |
|
|
| Suburban |
20 |
|
| Urban/subrban fringe |
10 |
|
| Urban/inner city |
-20 |
|
| Rural |
-10 |
|
| 9. Loan to Value (Section 7 on Mortgage Information
Form) |
|
|
| Up to 65% |
20 |
|
| 65.01% to 80% |
10 |
|
| 80.01% and higher |
-20 |
|
Total Ranking Score is: |
----> |
|
If the total ranking score is between 100-140...High
Investor Appeal
If the total ranking score is between 70-99...Moderate
Investor Appeal
If the total ranking score is lower than 70...Low
Investor Appeal
Real-Estate-Haven