Note Creators Infinity Returns Calculator
This calculator is desigend to assist Note Creators/Seller Finance if they can create an “Infinity Return” by selling the 1st lien holding the 2nd lien. A note buyer ideally wants to purchase at around 65-70% of Investment To Value (ITV) so focus on the 1st loan at around 70% of Property Value. Together with the down payment and cashflow of the 2nd you will see what your profit is. Ideally have the 1st lien Pay off the underlying debt so you have ZERO into the deal! INFINITY RETURNS!
Let us know if you have any questions!
| Overall Property Value: $ | |
| Sale Price to Borrower: $ | |
| Down Payment $: | |
| Underlying Debt: $ | |
| Servicing Monthly Fees: $ | |
| Who Pays Servicing Fees: |
| 1st Lien Term (in Months): | |
| Second Lien Term (in Months) | 1st Lien Rate: |
| 2nd Lien Rate: | |
| 1st Lien % of Property Value: (ideally 70) | |
| # of Loans: |
| 1st Lien Note | |
|---|---|
| Original Balance: | |
| Term: | |
| Rate: | |
| Payment: | |
| 2nd Lien Note | |
|---|---|
| Original Balance: | |
| Term: | |
| Rate: | |
| Payment: | |
| Borrower’s Full Payment: | |
| Note Buyer’s Yield: | |
| Note Buyer Purchase Price (1st Lien): | |
| Note Buyer’s Price % of Value (ITV): | |
| Note Buyer Purchase Price (2nd Lien): | |
| Profits on Selling 1st Lien | |
| Down Payment: | |
| 1st Note Sale – Debt (Net Sale) | |
| Net Profit – Cash now | |
| Lender’s Cash Now (Down Payment – Net Sale of 1st) | |
| Profit on 2nd Lien | |
| Future Income from 2nd Cashflow: (2nd Payment x Term) | |
| Total Income 1st Sale + Future 2nd Cashflow: | |
| Money in Deal | |
