Partial Note Investment For Sale-11% Yield to Investor
Updated: Apr 5, 2022
Lien Position: 2nd
Property Value: $360,000
First Lien Balance: $194,000
First Lien Status: CURRENT
Protective Equity: $166,000
Unpaid Principal Balance: $24,818.32
Monthly Net Payment (After Servicing): $461.62
Number of payments being sold: 38
Purchase Price: $14,775.81
Annual Yield to Investor: 11%
Looking for a stable investment with a high yield? This partial note investment is secured by a mortgage on the property. Great for an IRA, 401k, or a buy and hold investment. Invest in real estate like a bank, without the headaches of landlording!
This offering is a note partial, which means that I am selling the next 38 payments from this note. The purchase price is $14,775.81. This loan is performing and comes with a warranty (which is explained further down this sheet).
Items Available for your Review:
AVM (Automated Valuation Model)
Payment & Servicing History
Amortization Schedule showing the calculation of the 11% annual yield
Interested in Learning More?
If this is your first partial purchase, we will ask you to sign an NDA due to the confidential information involved in the transaction. Then we will schedule a call to discuss the asset, review all of the due diligence documents, and review the contract. Overall, partials are easy to purchase and require no ongoing effort from the buyer. The loan will be held in the buyer's name during the partial ownership period, and you are encouraged to consult with an attorney during the process.
The Warranty and How it Works:
Payor’s Default. Should the Note and Security Instrument be in default (ninety (90) days or more past due), the Buyer will notify Seller via written notice of such default. Under no circumstances will buyer initiate negotiations and/or legal or loss mitigation efforts or foreclosure against Payor unless approved by Seller in writing.
Once the Seller has been notified in writing of the Payor’s default as outlined above, the Seller shall do one (1) of the following at Seller’s choosing:
(A) repurchase Buyer’s interest in the applicable Note and Security Instrument within thirty (30) days of written notice by payment to Buyer of an amount equal to the sum of Buyer’s currently outstanding principal balance. This will be calculated using the principal balance on “Exhibit B.” If this option is chosen, Buyer agrees to assign the Note and Security Instrument to Seller, including full ownership and all rights to collect outstanding balances and payments.
(B) Within thirty (30) days of said notice, make payment to Buyer of any amounts then in default and undertake in writing to make future scheduled payments to Buyer to the extent that the Payor might fail to do so. If this option is chosen, Buyer agrees to assign the Note to Seller, including full ownership and all rights to collect outstanding balances and payments.
(C) Within thirty (30) days replace the Note and Security Instrument with a new note and security instrument acceptable to Buyer. If this option is chosen, Buyer agrees to assign the Note to Seller, including full ownership and all rights to collect outstanding balances and payments.
Seller shall choose which of the three (3) options above to use as remedy in event of Payor’s default. A replacement note will only be used if Buyer is agreeable to the replacement.