Posted by Steve-Atl on December 24, 1999 at 09:34:49:
Try selling one or more of your owner financed notes. You will need to sell at a discount, but that discount could be small depending on the terms of your notes. In general, the smallest discount will be on the notes that are the highest interest rate, shortest term, lowest LTV, and those notes that are seasoned.
Call American Note (they advertise on this web site). They are a large institutional buyer of notes and they will give you a quote on your notes. Another choice is individual investors that buy notes in your area. I do that but only notes on properties in my area (so I can foreclose and take over the property if payments are not made)
I have been in this exciting business for close to one year. And, thanks to God have done very well. I currently own 11 houses and 4 apartment complexes (4-plexes). All at about 50-60 percent of appraised value. Here’s my problem, I purchase these properties through a great relationship with my bank where I have a 50K line of credit to do repairs. I usually have plenty of cash to make sure work is done before I resell houses for a profit. My problem now is cashflow. I have to many projects and not enough cash. I have one house expected to sell very soon but it won’t be enough. 5 of these homes I have owner financed and have quite a bit of equity. How can I leverage these or even some of the others for cash? Any help would be greatly appreciated.