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Glossary

NoteCarry

After an initial deal has been entered and saved on NoteCarry.com, other deals can be quickly calculated by entering the address and only 10 data points!

These 10 inputs create the terms of the deal:

 
Buyer’s Down Payment – the amount of cash buyer will pay at time loan is granted
Market Value (30-Day) – market value to sell home in 30 days
Offer Price – the amount buyer will pay to purchase the property
Amount Owed by Seller – the amount required to pay off seller’s existing loan(s), if any
Property Taxes (year) – the amount paid per year for property taxes
Hazard Insurance (year) – the amount paid per year for hazard insurance
HOA Dues (month) – the amount paid per month for Home Owner Association dues, or other recurring fees
Buyer’s Current Rent (month) – the amount buyer currently pays for housing (rent or own)
Buyer’s Income Tax Bracket – the highest amount at which buyer’s wages are taxed
Appreciation Estimate (year) – the expected rate at which property will appreciate per year*

*NOTE: Appreciation is neither certain, nor guaranteed!

These 3 inputs provide details on properties you intend to flip (purchase and then re-sell with owner financing):

 
Acquisition Cost – if a new purchase, input the price paid for the property – if already owned, enter the market value of the property
Acquisition Closing Costs – closing costs to acquire property – enter 0 if the seller already owns the property
Repair Costs (if flip) – the amount spent on repairs before selling – enter 0 if the seller already owns the property

When entering the first deal in NoteCarry.com, enter the 12 inputs below. Click on the “Save Defaults”. This information rarely changes, but can be modified for each deal if necessary. Each time information is saved, the new default values will be used on all future deals!

 
Yield on 1st Note – the rate of return on the 1st note
Term of 1st Note (years) – number of years over which the 1st note is amortized
Strategy for 1st Note – indicate plans to HOLD or SELL 1st Note
Yield 2nd Note – the rate of return on the 2nd note
Term of 2nd Note (years) – number of years over which the 2nd note is amortized
Strategy for 2nd Note – indicate plans to HOLD or SELL 2nd Note
Loan to Value % of 1st Note – % of the 30-Day market value 1st mortgage will represent
Discount on 1st Note (if Sold) – percent the face value of 1st Note is discounted when sold
Discount on 2nd Note (if Sold) – percent the face value of 2nd Note is discounted when sold
Servicing Fee (month) – fee charged by servicer to pay the 1st, 2nd, taxes, insurance, HOA
Seller’s Closing Costs – % of the sale price expected to pay seller’s closing costs
Real Estate Commission – the % of the sale price paid to real estate agent(s) on the sale

If a portion of the notes created are sold, these 4 inputs will calculate the amount an investor would pay for the payment stream being sold.

 
# of Payments Sold on 1st Note – if a portion of the 1st note is sold, enter the number of payments being sold
Yield on Partial 1st – if a portion of the 1st note is sold, enter the interest rate offered to the investor buying the payment stream
# of Payments Sold on 2nd Note – if a portion of the 2nd note is sold, enter the number of payments being sold
Yield on Partial 2nd – if a portion of the 2nd note is sold, enter the interest rate offered to the investor buying the payment stream