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What Does PAR Mean in the Note Business?

http://WeCloseNotes.com What does PAR mean in the note business? Par means that a seller is looking to sell a note at the full value or balance of the unpaid principle balance. They are note looking to sell at a discount. You can sign up for Scott Carson's Note Weekend training class for just $49 at http://noteweekend.com. And check out and the podcasts and other training that Scott offers at http://WeCloseNotes.com. hey everybody scott carson here with your note term of the day and today's term is par p-a-r now yes i know many people like par isn't that a golf term well yes it is a golf term but it also is in the note trading space and when we ask pricing uh oftentimes sellers will come back and say they want par now you see par is exactly equal to what par stands for in golf if you have a par 4 or par 5 that means it takes three or four or five strokes for par to make it in there on average and if you've shot par for the whole you shot four strokes for the par four that means you came in equal so it's the same thing in the note space if somebody says that they want par for that means they don't want any discount they want exact face amount of the loan balance now that doesn't always make sense and now if you're looking for performing notes and you've got really cheap money that's great and we're talking like institutional debt cheap cheap cheap so if interest rates at three percent you've got money at one percent that's still a pretty good return because that's a 300 return on your money but if you've got expensive money and the interest rate is at four or five or six percent on the mortgage that's not a good deal because we need this get a return so par stands for it's par doesn't mean a hole or a golf but basically means coming in at full balance of that the full upb the unpaid principal balance which is another term we talked about earlier but that's what par means coming in at face value no discount and oftentimes when a seller tells us that it's usually a no-go because we're looking for some sort of discount especially in the non-performing space if the seller wants par at non-performing i'll say they smoke they're smoking crack be a needed term than i'd talk about later on but par means equal no discount no overage and uh if you get that back from a seller then it's often time say well thanks but i'll pass especially if you've got uh you know decent money with some money costs