A new system for bringing together buyers an sellers of notes and other paper instruments has recently opened a Web site on the World Wide Web. The Note and Paper Trader provides an advanced and interactive marketplace for seller financed mortgages, annuities, and structured cash flows to be converted into a lump-sum payout. Using this system, you can interactively auction off an existing mortgage or deed of trust, or have a seller-financed mortgage structured for you--or for a client if you are a real estate broker.

Lump-Sum Conversions

Advanced technology, interactive mediums and rapidly growing interest in the Internet has enabled The Note and Paper Trader to create an environment that offers note sellers more leverage and control when converting portions of a note into a lump sum disbursement. Three innovative features separate this service from other cash flow conversion services: (a) a competitive arena, (b) a two-tiered quoting process, and (c) inner-system mailboxes.

When you, the seller, submit a note, the details are displayed in a professional format and a secure environment, where investing members from all across the country can review, evaluate, and make an offer. This large pool of investors produces multiple responses, and since all members are aware that others will be making offers as well, tend to make a very competitive bid. This bidding process--which is the first tier of the two-tiered quoting system--assures you that you are getting top value for your note.

Tier two allows the seller to pick and choose between the offers received. Then he/she can tailor a deal that generates the best possible conversion plan for the highest purchase price by extracting the creative structuring from one offer and combining it with the buying power of another, for example. The seller can combine the best features of all the offers to optimize a deal to convert all, or a portion of, the note into a cash disbursement. The seller may want to:

• Sell a portion of the monthly payment.
• Sell all or part of a balloon payment.
• Sell a designated number of payments, in any order.
• Create a combination of payments, split payments, and balloon payments.
  
• Determine amount of discount required to obtain a desired cash amount.
  

This restructured proposal is then submitted to all the original investor/respondents, and in effect, auctioned to the highest bidder. The free inner-system mailbox function automatically collects the offers and organizes them into an easy viewing format. This time-, money-, and energy-saving feature gives the seller the capability of negotiating with the nation's top note buyers, while avoiding the high volume of phone calls and faxes normally associated with marketing paper the conventional way.

If you are a real estate broker working in today's marketplace, you know it is sometimes difficult to obtain conventional financing--especially with terms that your buyer can be comfortable with. The result cand be more non-qualifying prospects, longer listing periods, fewer closures (which translates into lost commission). The Note and Paper Trader has implemented a program to provide realtors, real estate investors, and developers resourceful solutions to overcome this obstacle.

Creative financing has long been used to try to alleviate these problems. But, the approach The Note and Paper Trader uses eliminates the guesswork and clams the worries of a seller about carrying back a note. The system evaluates the creditworthiness of the buyer, structures the terms of the note and carry back--at close of escrow--to produce the cash the seller needs from the sale. Then, the program takes the process one step further by generating numerous ways to structure the note to provide a variety of choices to facilitate the closing of the deal.

First, the broker completes the online form describing all the criteria involved in the deal. Important areas include the cash needs of the seller, the financial limitations of the buyer, and a description and photograph of the property. Next, the package will be presented to the members of the service. All interested investors will evaluate the creditworthiness of the buyer, assess the value of the property and structure a seller "carry back" accordingly. Structures will vary from buyer to buyer, and each will include the amount of cash each investor is offering to put up to meet the needs of the seller.

Then, the inner-system mailboxes automatically collect the proposed "notes" from all interested investors and organize them into a reviewing format. Within the mail system, notes can be reviewed and printed out for presentation to the buyer and seller. Finally, when the buyer and seller confirm with the selected investor that they wish to proceed with his/her offer, the broker can open escrow. At close, the seller get his/her cash and carries the note, the buyer takes possession of the property, the investor receives the

note and the broker makes his/her FULL commission.

Some advantages that acrue to all parties of a real estate transaction that iis aided by using The Note and Paper Trader system include:

• Buyer saves thousands of dollars in points, origination fees, etc.
  
• Seller, by offering flexible terms, will receive top dollar property.
• Buyer will have mortgage terms that are better suited to his/her financial situation.
• Seller can defer taxes that would otherwise be due in year of sale.
• Increases the pool of potential buyers for the real estate.
• Investor collects payments and makes distribution of funds.
• Closing time is greatly reduced by not having a large lending institution involved.
  

This innovative application utilizes many of the biggest advantages provided by the Internet. The rapid transfer of information, the bringing together of a number of principals to compete for a product, and instant communications between participants are some of advances that will make the Internet the medium of the twenty-first century.

If you have a note for sale, would like to put together future deals utilizaing this concept, or are a real estate broker, go on-line at:

http://www.noteandpapertrader.com

Now is the time to start taking advantage of the information super-highway and all the technological breakthroughs down the road.

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