Creating your own real estate note

J.P. Vaughan wrote an article on this site, creonline, that was about creating your own real estate notes as a way of financing rehab or gap money.

I wanted to know if anyone is doing this and if you have successfully found investors to fund you by getting a note against the property at the time of acquisition or shortly after.

The key to making this work is to have a note buyer lined up, not to create a note and try to randomly peddle it for sale. Approach some note buyers and get their criteria - LTV, credit, collateral, documentation requirements, etc. Then, create a note to fit. This is exactly what mortgage lender do - they follow strict FNMA guidelines up front so they can sell it to FNMA after they fund the loan.