creating a Note pitfalls ? - Posted by Mike

Posted by James Buster on July 09, 2002 at 21:58:29:

Get Bill Broadbent’s “Owner Will Carry”. It’s available from Amazon. Invaluable information on doing seller financing.

creating a Note pitfalls ? - Posted by Mike

Posted by Mike on July 08, 2002 at 19:35:31:

I have a potential opportunity to purchase a MH with land (4.2 acres) for around $22,000 it is currently rented and the renter would like to purchase it but can not get financing. I am considering purchasing this property and immediately selling it to the renter for around $25,000 at 14-16% interest. I would have to Finance the 22,000 but should be able to get around 7-8.5% interest. (Both loans would be 20 yr.)

My questions are:

Does this sound like a good deal? (does to me)

What are the pitfalls of doing something like this?

Is a balloon payment normal/common?
(Thinking about payout at 10yr point with interest Penalty for last 10yr if not.)

I have not even considered all the aspects of selling the note.

I Probably need to make a decision on this sooner then I can get Deals on Wheels or Tin Can alley so while I understand there value any personal insight would be helpful.

Re: creating a Note pitfalls ? - Posted by Kevin OK

Posted by Kevin OK on July 09, 2002 at 22:38:49:

Post your question again on the “Paper & Notes Forum” on CReonline…listed on the left hand side under “Interaction”. Your question is perfect for that area of Creonline.