The first question may be is it a performing or non-performing note? This is quite important not only in the pricing of the discount for the purchase of a note, but for the setting of a strategy for why the note is being purchased.
The second major question is what is the priority of the note? This becomes important in pricing and also in evaluating risk.
The third question is what is the quality of the multifamily asset that the note/s/ are attached to?
To attempt to give you the pros and cons of note pricing and note purchasing is a larger job that can be undertaken in a simple answer to what may be a complex question.
It would be my recommendation that you do not participate in a note transaction without sound advice from legal, financial and an experienced commercial, multifamily broker.
Rob Baird, CA RE License #544165 (One of the oldest active RE licenses in CA)
Jun 22, 2010