Pricing is determined via 3 main foundational characteristics. They are:
Loan terms (rate, pay-back period, balloon payments, clean records, etc.)
The borrower’s ability to pay said loan to the note holder
The collateral securing the loan (property, business, etc.)
The note buyer will need to perform diligence while processing the purchase of a note. The diligence process will include, but not be limited to: a drive-by property appraisal, review of the payment history, ordering and review of a title report pertaining to the property securing the note.