Posted by John Corey on March 22, 2006 at 05:25:38:
My experience is that most banks will not touch such a deal. They do not get it or just decided to not lend on such collateral.
You can look for a HELOC if you have equity in your home. The margin could be very good.
If you have a 401K you can get a loan there (if the company offers that option) or have your IRA buy the note. Both assume you have the cash in a retirement account.
John Corey
How can I buy this note? - Posted by Levi
Posted by Levi on March 21, 2006 at 20:37:38:
A woman called me today who wants to sell a note she has. The principle balance is $50,000 and the house is worth $90,000. PI payments are $513 at 9%, no balloon. I could probably get it for around $40,000, but where do I get the money? Would a bank loan the money and use the note for collateral? I figured that if I can borrow the money at 7%, I would enjoy a spread of $200/mo. Plus, with the low loan to value, the risk is minimal.