Eric Scharaga
Founder, Damen Capital
Private lender and direct land note buyer serving land investors nationwide. Featured on REtipster, Legends of Land, and Land Investing Online. LinkedIn →
Enter your note details below and see the cash range a direct land note buyer would offer today. No email required, no obligation.
Or text your note details to 302-526-0200
This is an estimate based on typical pricing. Your exact written offer comes within 24 hours.
*All bids are subject to property review and valuation and document review.
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Questions? Call or text 302-526-0200.
Note buyers price by yield, not by guesswork. We take your monthly payment stream and calculate what we can pay today to earn our target return over the remaining term. That is why three things move your offer more than anything else: the buyer's down payment, the interest rate on the note, and the years remaining.
Balloon notes work differently. A long amortization keeps the buyer's payment low, and the balloon brings the money back sooner, so a 30 year note with a 5 year balloon prices well above the same note with no balloon. But the buyer has to refinance or pay off when the balloon comes due, and on a long amortization the balance has barely moved by then. We price balloon notes at a higher target yield, around 18%, to get paid for that risk. Balloons due in under 3 years price case by case. And on parcels under 10 acres, we need a perc test showing a conventional septic system before we buy. An alternative system only works with 40% or more down.
Want the number before you ever create the note? Structure your sale with 20%+ down at 10.9% interest on an 8 year term and your note will price near the top of the range. Our seller financing program shows exactly how to set up the deal, and we buy the note the day you close.
Note buyers price notes by yield. We calculate the monthly payment from your balance, interest rate, and remaining term, then price the payment stream to earn our target yield, capped at 65 percent of the property value. Stronger down payments mean a lower required yield and a higher cap, and a seller buyback guarantee improves the pricing. The buyer's credit score also moves the yield. We look for a 690 score at 20 percent down and 630 at 30 percent down. A lower score or no credit score lowers the bid, more so on smaller down payments. With 40 percent or more down, or after two years of on time payments, credit does not affect the bid, and one to two years of on time payments cuts its effect in half. Any score you give us has to be backed by a credit report before closing.
The final number depends on the property, its value, and the payment history, which a calculator cannot see. The range shows where a bid typically lands. Submit your note details and you get an exact written offer within 24 hours. See the document checklist for what the full file includes.
Three things move the price most: a bigger buyer down payment, a higher interest rate, and a shorter remaining term. A note with 30% down and a 10.9% rate prices far better than one with 10% down at 8%.
A balloon returns our money sooner, so a 30 year note with a 5 year balloon prices well above the same note fully amortizing. We price balloon notes at a target yield of about 18 percent, higher than a fully amortizing note, because the buyer has to refinance or pay off at the balloon date and the balance has barely moved on a long amortization. Balloons due in under 3 years are priced case by case. The 65 percent ITV cap still applies.
Yes. Notes with missed payments typically price at 50 to 65% of balance depending on the property and how far behind the payer is.
A buyback guarantee means you agree to repurchase the note if the borrower defaults. It removes most of our default risk, so we price the note at a lower target yield, which raises the offer, and with a buyback we will also price notes with under 20 percent buyer down payment. The 65 percent ITV cap still applies.
On parcels under 10 acres, yes. We only buy notes where a perc test shows the property supports a conventional septic system. If the test calls for an alternative system (mound, aerobic, engineered), we will only buy the note if the buyer put at least 40% down. Without a passing perc test the buyer may not be able to build, and a buyer who cannot use the land is far more likely to stop paying. On 10 acres or more we do not require it.
Yes. Minimum $25,000 remaining balance, minimum $50,000 property value, and minimum $10,000 buyer down payment. We do not purchase notes in California, Hawaii, Louisiana, Maryland, New Jersey, New York, or Pennsylvania.
Written offer in 24 hours. 7-day closings. No broker fees.
Private lender and direct land note buyer serving land investors nationwide. Featured on REtipster, Legends of Land, and Land Investing Online. LinkedIn →