Learn to Profit from Notes with Paper Assets Capital
Our educational materials are set up to help you better understand everything you need to know about buying and selling notes.
Can you explain what note seasoning means?
|
The short definition of seasoning is history. In other words, a seasoned note is one where the borrower has been making payments for a period of time. As an Investor, it is important to take into consideration how long a note has been seasoned when you are doing a valuation of your portfolio. Keep in mind, the more seasoned a note is, the better off you are.
Record-keeping is critical when it comes to determining the seasoning of a note. Oftentimes, seller financed notes have poor records which can make it somewhat challenging when valuing a seasoned note. Record-keeping has to include the term of the note, the rate of the note and the historical payments on the note. |
HTML Comment Box is loading comments...