Posted by Arlene on September 03, 2003 at 21:23:09:
How do you find investors to buy your note?
thx
Creating Own Mortgage - Explain Please - Posted by Elizabeth (NJ)
Posted by Elizabeth (NJ) on August 29, 2003 at 20:18:15:
Hi, I just posted this message but it didn’t show up on the board, so here goes again.
Someone referred me to an article from this site entitled “Creating Your Own Mortgage” by JP Vaughn. I understand the concept but need some help with understanding the practical applications in a scenario for me.
If someone can walk me thru this I would be grateful.
Thanks.
Re: Creating Own Mortgage - Explain Please - Posted by doug,ky
Posted by doug,ky on September 03, 2003 at 12:15:55:
Hi Elizabeth
The scenario would to be to buy a property well below FMV. Here’s an example of mine.
FMV after repair $80k
Purchase prise $39.6k
Repairs $8k
I would have used a mortgage i created to purchase this home by creating a mortgage for $48k at an interest rate to attract investors with money. They buy the mortgage giving you the cash and you then give the cash to your seller. No bank qualifying or points depending on your investor.
I will use this technique soon. The above example is of a property i purchased only i used my line of credit instead. When I have the fix up complete, I’m going to create a mortgage and see if I can attract some investors in my area who want better than bank interest. The idea being to free up my line of credit and add some new sources for financing.
Hope this helps.
Doug