Creating a mortgage - Posted by Bryan

Posted by Monique on February 20, 2001 at 20:23:30:


If you want to learn more about flipping properties, check out Bill Bronchick’s course called … “Flipping Properties” – you can find it here.

If you’re interested in creating paper and selling it to note buyers, you might want to head on over to the Cash Flow Forum. Lots of discussion on topics like this there.

A few quick thoughts …

  1. You can flip property without creating a note and selling it to a note buyer.
  2. Note buyers buy paper at a discount. You would need to factor in this discount (the discount varies greatly based on the terms of the note) to your profit projections.
  3. To my knowledge, note buying/selling is legal in all states. Some states have licensing requirements to buy notes.
  4. Note buyers are always looking for paper to buy. Some mortgages are better than others. In general:
  • Higher interest is better
  • Shorter amortization is better (15 years is better than 30 years, for example)
  • Lower Loan-to-Value is beter
  • 1st mortgages are better
  • Good payor credit is better
  • Large payor down payment is better


Creating a mortgage - Posted by Bryan

Posted by Bryan on February 20, 2001 at 18:32:50:

Hi all. I’m a newbie about ready to get my feet wet(a little nervous). I’ve gone back and forth on the method I’ll use to buy my first property. I’m mainly interested in flips to build some cash.

What are the things to watch out for when writing a mortgage myself and selling it to a note buyer? Is this legal in all states? Do the note buyers like buying this type of mortgage? How do I factor in yield?

I 've done a lot of studying the subject, but want more input if anybody has any.