Creating a mortgage - Posted by Connie

Posted by Ed Copp (OH) on March 19, 2001 at 19:01:24:

If your buyer does not qualify for bank financing, don’t expect a note buyer to step up and open thier checkbook to you.

Be aware that all note buyers buy at a discount, they want the cream of the crop; and you do not have that. So expect some deep discounting. Other things that are considered are the property, it’s age condition and location.

The creation of a mortgage is pretty simple, and I would reccomend a lawyer for the first one. The cost should be reasonable and the money that you spend for professional preparation and recording is money well spent.

I would consider a land contract rather than a mortgage so that the deed would stay in your name until paid off or refinanced. This is a stronger position with a weak buyer. But before doing anything talk with a buyer of notes and see what they have to offer…

Creating a mortgage - Posted by Connie

Posted by Connie on March 19, 2001 at 16:32:45:

I have an investment property that I own free and clear. Currently there is a tenant in the property that would like to buy; but cannot qualify for bank financing. This tenant has been in the property for a long time and always pays before rent is due. I would like to finance the purchase and then sell the note.

QUESTION: What terms would be attractive to most purchasers of notes?