Posted by Chuck on July 01, 2003 at 10:58:53:
10% in a note as down payment, and 90% in a note financing… still equals nothing down.
Nothing down paper, is worth the paper it’s printed on.
Does this work, or am I doing it wrong? - Posted by Bryan
Posted by Bryan on June 30, 2003 at 23:31:57:
I am new to investing in real estate,and am educating myself at an agressive pace, but feel as if I am missing something along the way. My wife and I recently found two duplexes where 1)we could buy at a discount 2) we fully rented 3) have great potential for increased cash flow and 4) are in great neighborhoods and are sound physically.
Here’s the rub. We preformed all of the due dilligence, did the cash flow analysis, reworked all the financials with a couple of variations to make sure it would work in any situation, even talked to the best property management firm in town to get thier read on the local rental market and got the grean light as to what our assumptions were comparitive to what they said. We tried to raise a 10% down payment for each property through calling a couple of companies to see if they were interested in buying a note we were looking to write for the down payment. We faxed them all of the proformas, analysis etc. weeks worth of work, and can’t get a call back from anyone. Are we doing something wrong? Does this moethod work? Looking for any experience somebody might have for a newbie like me.
Your’re doing it wrong… - Posted by Michael Morrongiello
Posted by Michael Morrongiello on July 06, 2003 at 17:32:26:
Bryan:
Note buying firms (including Sunvest) get unsolicited faxes & emails all day long from folks who have never invested the time to get on the phone and DISCUSS with them whether what they wish to accomplish is even doable or not.
I suspect you never CALLED and spoke to anyone in detail about this deal…Therefore to many “paper” investors you deal is DOA- Dead on arrival.
Now there is a way to strucure your deal to raise the $10,000.00 down payment. However the property seller would have to be willing to then FINANCE the balance of the sale price for you. Is this feasible?
You might search for my previous posts on the concept of “use what you want, to get what you need, to get what you want…”
You can USE this proprety to structure a 1st lien seller financed mortgage & Note that can be sold to generate $10K cash. The seller would then carry the remaining amount due to them in the form a subdorniate 2nd lien.
CALL ME if you would liek additional assistance.
To your success,
Michael Morrongiello