A teaching tool, not a final answer
Before You Calculate
This calculator helps you figure out what to bid on a performing note based on the yield you want to earn. You enter the note's current terms, the yield you are targeting, and the calculator tells you the maximum price to pay to hit that yield.
It is a starting point, not a final answer. A real offer needs stress testing against worst-case scenarios, ITV verification against the property value, and a full review of the collateral file. This tool gives you the math. The rest of the work is yours.
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Your Maximum Offer Price
$0.00
This is the price that gets you your target yield based on the inputs above.
The calculator gives you the price for your target yield. It does not check ITV (Investment-to-Value). Before you submit an offer, calculate ITV by dividing your offer price by the property's value. The rule from the buy box framework: stay at or below 75% ITV. Lower is better.
Your offer price assumes the borrower keeps paying. Here is what to consider before submitting it:
If the math still works under each of these stress scenarios, the offer is solid. If not, lower your bid or pass on the deal.
This tool gives you the math for a single offer based on the inputs you provide. It does not evaluate the borrower's payment history. It does not assess the property's condition or location. It does not verify the chain of title or the assignment paperwork. It does not catch second liens, unpaid taxes, or code violations. Those skills are how you turn a calculator number into a real, defensible offer.
The structured training I personally recommend for those skills is Kevin Shortle's mentorship program. Kevin has walked collateral files with me deal by deal and helped me develop the discipline to evaluate performing notes beyond what any calculator can show.
Full disclosure: I'm an affiliate of Kevin's program. I recommend it because of how it shaped my own investing.