InnoVest Resource Management's Foreclosure Forum

Discussion Board Foreclosure Training Title Holding Trust Speaking Schedule Foreclosure Codes 50 State Foreclosure Basics Foreclosure Glossary 60+ Yrs Interest Rates News & Trends FAQ Dingbat Retirement Plan Links Contact / Map Home

[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Initial offer amount... Posted by Ward-CA- on November 01, 2001 at 7:13 PM In Reply to: Initial offer amount... posted by Alfred -- CA on November 01, 2001 at 2:34 PM : Ward, : Re: Junior bene buyouts. I've done all the research, located a note holder and I'm about to make an offer on their 50K 2nd of Nov 1998. : When dealing with small to medium sized finance companies (lenders), as opposed to private note holders, do you think that an initial offer of 50% of the remaining balance is wise, or would that just be too low for them? Would it be better to start at 60%? (I was just wondering if it is possible that, due to a 50% offer, they would be insulted or think I was trying to rip them off and thus wouldn't take me seriously.) : Also, if a note has been assigned several times... can you assume that it has been discounted a few times and thus you can afford to make a lower offer than if it was the original lender? =•=•=•=•=•=•=•=•=•=•=•= Alfred, the folks I talk to who buy discounted B & C grade junior notes tell me they get the stuff for around 15 cents on the dollar. Of course, they’re buying portfolios of a million bucks or more. So I’d try offering around 1/3 if I were you. I think you’ll be pleasantly surprised. The general rule I’d follow is to offer too low rather than too much. You can always go up, but once you make a high bid it’s almost impossible to come down. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : Ward, : : Re: Junior bene buyouts. I've done all the research, located a note holder and I'm about to make an offer on their 50K 2nd of Nov 1998. : : When dealing with small to medium sized finance companies (lenders), as opposed to private note holders, do you think that an initial offer of 50% of the remaining balance is wise, or would that just be too low for them? Would it be better to start at 60%? (I was just wondering if it is possible that, due to a 50% offer, they would be insulted or think I was trying to rip them off and thus wouldn't take me seriously.) : : Also, if a note has been assigned several times... can you assume that it has been discounted a few times and thus you can afford to make a lower offer than if it was the original lender? : =•=•=•=•=•=•=•=•=•=•=•= : Alfred, the folks I talk to who buy discounted B & C grade junior notes tell me they get the stuff for around 15 cents on the dollar. Of course, they’re buying portfolios of a million bucks or more. So I’d try offering around 1/3 if I were you. I think you’ll be pleasantly surprised. : The general rule I’d follow is to offer too low rather than too much. You can always go up, but once you make a high bid it’s almost impossible to come down. Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

Copyright © 1997-2001, InnoVest Resource Management

InnoVest Resource Management, 4569-A Mission Gorge Place, San Diego CA 92120-4112
(619) 283-5444, Fax (619) 283-5455