Create & Sell Problems - Posted by JohnAz

Posted by Craig on April 15, 1999 at 15:42:09:

I see exactly where your confusion is coming from. Here is the problem. If “you” create a note with “yourself” as the payor, the sale of that note is absolutely a “loan”. If you create a note against someone else where you are “recieving the payments” then you have made a loan and if you sell it to someone then that someone has not made a loan, but rather “bought a loan from you”. The way that some articles are written do not explain the difference. You need to find a equity or hard money lender who will make a loan to you against your equity. Which is the same thing as selling a note that you are making the payments on.

Create & Sell Problems - Posted by JohnAz

Posted by JohnAz on April 15, 1999 at 14:15:08:

Either I’m missing something, overlooked it, or just I’m just plain ignorant…

As far as looking at my situation from a “normal” standpoint what I want to do is a cash out refi on three properties. That doesn’t seem to be working since my income is from rentals and lenders here want to throw in vacancy factors even on stated income, no doc loans.

So…I start thinking of the “create a note and sell it” idea. I must have talked to the wrong note buyers, because they say they can’t do that kind of a deal with out a brokers license. They want to say that’s “table funding” or “purchase money” or whatever. I’ve still got one lender still checking on going the “normal” loan route, should hear something back soon.

If that fails…I’m back to square one. Sitting on equity I NEED to pull out. If someone has been in this spot and knows how to get around all the problems let me know!
Thanks!! John

Re: Create & Sell Problems - Posted by daveh

Posted by daveh on April 21, 1999 at 10:54:30:

Try the following. I’ve discussed this situation with him before. He is very creative and flexible.
Gary Cantor National Acceptance
800-500-6371 or faxed at 561-748-3403.

Let me know how it works.

Re: Create & Sell Problems - Posted by John Behle

Posted by John Behle on April 17, 1999 at 17:29:41:

Conventional loans are almost always the cheaper route to go. Usually when someone “can’t” get financing they just don’t have the right loan broker. I would explore that route a little more with another broker.

From all I hear, Ed Garcia can do wonders. His email address can be found in the posts or archives of Newsgroup 1. I’ll also forward your post to a couple other brokers that might be able to help.

Re: Create & Sell Problems - Posted by Rene Perrin

Posted by Rene Perrin on April 15, 1999 at 20:42:03:


E-mail me with the particulars (ltv’s. etc.) Do you know what your fico score is?


Refinance - Posted by Sean

Posted by Sean on April 15, 1999 at 16:55:42:

For what you are looking for a note buyer won’t help you. It sounds like you have nice credit and equity but the bank is too conservative in its estimation of your cash flow (due to vacancy calculations) and that’s holding up your getting a loan.

What do you need the money for? If it’s for more real estate transactions in many cases you can use the equity in your units creatively in offers to sellers. If the seller is motivated enough they will consider things that a bank or a note buyer would be unwilling to.

Have you considered a Graduated Premium Mortgage (GPM). They have lower payments to start and are easier to qualify for if your income is lower or difficult to document.