Posted by Ken (Fl) on August 22, 2003 at 09:30:49:
Michael,
Thank you for the assistance.
I have never tried to move any paper. I did get a contract for sale signed the other day with the buyer providing their own financing.
I need to learn other exit strategies just in case.
God Bless,
Equity/refinance note - Posted by Ken (Fl)
Posted by Ken (Fl) on August 19, 2003 at 09:46:28:
I purchased a home june 1 for 89k. Hard money @ 16%. The seller paid all closing costs, points etc. with 500 cash to myself.
I renovated the property for re-sell. Rehab cost, carrying cost to date is about 15k. I have about 7k of my own money in the rehab, the rest is on a 0% interest advance until Dec 30. Then credit card interest applies. The appraisal came back at about 130k.
Most lenders are giving me issues over seasoning to cash-out my original investment.
How can I create a note that is attractive to an investor that will cash out the property without seasoning.
God Bless,
A Equity/refinance note = Not very marketable - Posted by Michael Morrongiello
Posted by Michael Morrongiello on August 21, 2003 at 16:39:41:
Ken:
If you are looking to “Create” a Note for purposes of refinancing your existing debt, you’ll find that there are few takers for mortgage paper created under these circumstances.
The quickest and SUREST way to get your profit out and to also be able to retire the existing hard money lender is to SELL the property to a “retail” owner user buyer and to consider marketing the property through the use of owner financing as both a marketing and financing tool so that this home will sell quickly.
Now this type of seller financed “paper” becomes VERY marketable and can often be sold CONCURRENTLY with the sale of the property from you to the new owner occupant retail buyer.
From the proceeds to be generated from the sale of this “paper”- you will retire any existing liens, debts, etc. and realize your profit from the property so that you can move on to the next deal.
Reputable Note investment firms (like Sunvest) can assist you in the proper things to look for when considering the sale and financing of any prospective buyer (such as required down payment, buyers credit profile, credit scores, employment, stability, etc.)
To your success,
Michael Morrongiello