Marco is a buyer of seller-financed notes and mortgages who is also a member of our amazing national community of real estate entrepreneurs. He’s co-teaching the all-day workshop on getting started in buying notes in late February and is the author of a weekly “Seller Finance” e-letter.
Like many other members, I attended the excellent Saturday Workshop taught by Robert Mohon called, “The Ultimate Credibility Package.”
One of the things I learned was all bankers are taught the four Cs of lending money: things they look at when considering whether to make a loan. These are:
- Credit
- Collateral
- Capacity
- Character
This made me think about the differences between lending money and buying seller financed loans that someone else already made, which is what I do. I came up with these four Cs for Note Buyers:
- Credit
- Collateral
- Capacity
- Conditions
These are all crucial for deciding WHETHER to buy, and how much to pay for, any note you might be offered. So let me break them down:
Credit
Seller financed note buyers review each payor’s credit report. Beyond FICO score, it shows their history managing credit and making payments consistently. It also notes bankruptcies in the last 7 or 10 years, and foreclosures in ... Read More…