Posted by Charles Steed on January 25, 2001 at 14:30:45:
In a situation like this, you become very important. As the expert, (even if you aren’t an expert yet, act the part and soon it will be) you are the one making things happen. The seller needs cash. You bring the cash to the table. You’ve got to convince the seller to first offer seller financing which you will purchase out of escrow. I suppose you could wrie up a simple agreement with them stating they’ll sell the note to you, but if you structure the deal properly, you will have to be involved just to make it happen.
Remember, the parameters for note buying. Critical Factors, in no particular order are:
The condition of the property.
The financial condition of the people making payments.
Seasoning - In this case there will be none, (that lessens the value of the note)
If I have a seller who I convince to do seller financing(to sell more quickly) and i want them to sell me that note at close, is there a way to lock up that deal or is this seller free to do what they wish with it,keep it,sell it to someone else,ect.?
Re: can a note deal be locked in? - Posted by Charles Steed
Posted by Charles Steed on January 25, 2001 at 12:29:35:
Why would you create a note and buy it at closing?
What are you trying to accomplish? It makes sense to have the right to purchase the note sometime in the future, but not at closing.
To have the right to buy the note sometime in the future, structure your contract to read: “should the seller ever want to sell the secondary financing, buyer has first right of refusal.” Contracts are important, but in the beginning don’t get hung up on wording. Sit down with your seller and a competent title officer and simply tell them what you want to do. They get paid to get these things right.
I guess you misunderstood.I am not the buyer or the seller of the property.Simply note broker.In reading some of the articles on this site I found that if you’re having a hard time finding motivated note sellers you can just “creat them”. Find FSBO,tell them they could sell their house faster with owner financing and that they are not “stuck” with that contract waiting 20 or 30 years for their money.That paper is now sellable and I want them to sell it thru ME. Yes,even at closing,hence the simultaneous close.
House goes to house buyer, note goes to paper buyer(thru me),end of transaction.
Now,my question was,can I get the house seller to commit to selling that contract to me and NOT someone else?