When you put the tenant buyer into the property you should have qualified them as to what was needed to get them a sufficient loan to pay you off. If you did not a second is a tool to get most of your money back. On many L/O you may be into the property for more that the 80% which is all the loan they can get. You then have to decide to move on to the next one or work with them to improve their credit. The small seconds become illiquid / unsaleable but can produce income if you structure correct so that you still control the situation. Maybe we can talk about it at AIREO Thursday.
Is taking a second the best creative tool for refinance? - Posted by d.henderson
Posted by d.henderson on February 08, 2000 at 19:20:41:
I have 7 L/O’s that will need to be refinanced in 6 months to a year, I had rented the two properties that I had before I went to the Dallas convention accquired 5 more since. So I haven’t had to refinance anyone yet, one sold no help from me.
To the experienced people out there, is a second a good creative tool and how many likes to hold a second? Is it safe? (I know nothing is a sure thing)I’ve read a lot on it, some say it’s throw away money not quite sure what that means. So can anyone shed some light on this part of creative financing.
Thanks to All,
Dee-Texas
Re: Is taking a second the best creative tool for refinance? - Posted by Jeff Denney
Posted by Jeff Denney on February 09, 2000 at 13:11:20:
We sell to b-c credit people by getting a 85% loan with 5% of their money down (can be borrowed) then carry back a second with a 1 year balloon ( we will extend if needed). The cash flow from the notes are small, but since we get 110% of value and don’t pay a realtor to sell ,I consider it gravy.