New appraisal example (Click to download)

Updated from the files of Talmadge Bell, Investor and Broker

This example has fictitious names and address info in it. When you download it be sure to put the appropriate info in the document for each situation you do.

Ned & Nancy Noteseller

123 Note Street

Notesville, NV 94177

RE: Promissory Note on Property located at 123 Cashflow Blvd, Cash Cove, CT 06177

Dear Ned & Nancy Noteseller,

Pursuant to your request, below you will find my estimate of the current “Cash Market Value” of the payment streams of the promissory note secured by the above mentioned real estate property. As no title report has been ordered, a marketable and insurable title is assumed. No physical inspection has been made of the securing property. No opinion is given concerning the condition or value of the property. This valuation is as of July 2, 2003.

This estimate of value is based upon the following information that you have provided to me:

(This info may change from one note to another.)

Position of Note: Second Balloon Amount: 19,013.97

Interest Rate: 8% Balloon Due Date: July 2, 2008

Payment Amount: 146.75 Estimate of Balance due on First Mortgage: $54,324.59

Number of Payments Made: 12 Payor’s FICO Credit Score: 650

Number of Payments Remaining: 48 Current Value of Property: $100,000

Balance of Second: $29832.93 Original Sales Price of Property: $100,000

This note has been presented to three institutional investors, private investors, or brokers that purchase such notes on a national basis. The average purchase price of these three quotes is $17,878.28.

Institutional Investor: $18,097.31

Private Investor: $19,180.66

Investor Broker: $16,356.86

Based on this analysis of the information that you provided, the current Cash Market Value of the payment streams associated with the subject property is:

$19,180.66 (Put the value a little higher than the average.)

The conclusions in this note appraisal are based on data provided by Ned & Nancy Noteholder. The accuracy of the evaluation depends on the correctness of the information that was provided. Should the conditions on which this appraisal is based change, the value of the note will likely change accordingly. There may be additional costs involved in the selling of the note that would include updating the title insurance, appraisal fees and broker fees.

As a result of having issued this evaluation, I will provide reasonable consultation to you concerning the contents and back up detail of this report.

Respectfully,

Agatha Appraiser

123 Appraisal Street

Appraiser’s Hamlet, AK 98177