Posted by Jasonrei on August 04, 2003 at 19:30:19:
I have a few that buy my notes, and they are personal acquaintances- friends, relatives, former employer, doctor, etc. I just told them what I was doing and asked them to get involved. As time goes by they invest more.
Creating a mortgage - Posted by keedaah
Posted by keedaah on August 04, 2003 at 14:10:05:
I read J.P. Vaughn’s article on creating mortgages. I would be interested in hearing from anyone that is having success financing their deals. I’m planing on offering 16% interest for 12 months paying only interest payments. I will also pre-pay 6 months at closing and look for deals with an LTV of 65%. My FICO score is 607, do you think I will have a difficult time finding someone to buy the note?
Re: Creating a mortgage - Posted by jasonrei
Posted by jasonrei on August 04, 2003 at 14:30:40:
I’m in TX. I usually pay cash for a house. I write up a note and deed of trust. Terms are similar to what you propose, though my interest is now lower, I seldom prepay interest, and never guarantee more than 3 months. LTV is anywhere from 65-90% ARV. The higher the LTV, the more interest I am willing to pay. My FICOs are around 650, though no one has ever asked, or even pulled a report.
My partner and I sign the note & get the deed of trust notarized. We give the lender the documents and they give us a check or wire funds to our account. Sometimes they tell us to go ahead and record the deed of trust ourselves.
Sometimes our lenders fund directly to the title company so the purchase & funding take place all at once, but not usually.
Your success at doing what you propose will depend on how much trust & confidence you earn from your prospects. If you believe in what you are doing, if you believe it’s a good deal, if you can give people good reason to believe you, and if you talk to qualified prospects, I think you will be successful in your efforts.
Re: Creating a mortgage - Posted by keedaah
Posted by keedaah on August 04, 2003 at 15:37:43:
How did you find the lender that buys your notes?