In the beginning of this week the government proposed the Private-Public Investment Plan that would potentially unfreeze credit markets by purchasing prominent banks toxic assets, or newly named "legacy assets". It will purchase legacy loans and legacy securities, both backed by real estate assets.

When the private investors and government purchase these toxic assets, what happens next? How are these establishments going to possibly profit from them? What will drive their price up or down?

I am sure it’s as simply as supply and demand, but how do these markets work?

Thank you in advance!
Brandon

In the beginning of this week the government proposed a plan that would potentially unfreeze credit markets by purchasing prominent banks toxic assets, or newly named "legacy assets". It will purchase legacy loans and legacy securities, both backed by real estate assets.

When the private investors and government purchase these toxic assets, what happens next? How are these establishments going to possibly profit from them? What will drive their price up or down?

I am sure it’s as simply as supply and demand, but how do these markets work?

Thank you in advance!
Brandon
anybody???……..

I have a business where I buy real estate, rehab and flip and/or rent. My partner and I are doing great but we are looking for private investors to bypass banks. The main question I have is this: What type of return do you pay to the investor? Is it a percentage of the total loaned, monthly payments from rent…? We simply dont know. So, If I bowrrow k from an investor, do I pay him back (as an example only) k? Do I give him monthly payments? Is their a time frame?

Thank you VERY much in advance. I live in Illinois and we are trying to figure out the most amicable way to repay the investor.

Thanks!!
All,

Excellent responces and I thank you. I have another question: How do you find private investors?

Where can I find private lenders for real estate deals? I want to invest houses and get hard money, or private financing for the loans, but it is hard to find private investors to fund them. Any help would be great!