Land Contracts and Selling notes? How? - Posted by Woody (MI)

Posted by Michael Morrongiello on February 16, 2002 at 22:13:57:

Its sounds like there is some proverbial “meat on the bone” here…As a buyer of Land Contract paper and other Real Estate secured instruments, yes there would have to be a formal evaluation of the Real Estate collateral done to ascertain what the true FMV of this property is worth that you would seeking a Note funder (like ourselves or others) to purchase.

The other issues in no particular order that will come into play are as follows:

Your occupancy?, Your down payment?, your credit background and profile?, your credit scores?, your employment?, alternative means of repayment?, the location, condition, and repairs required?, and finally the repayment terms of the Land contract, etc.

It will be the dynamic interaction of these variables that will allow the creative Note purchaser to assist you in putting together this deal.

To your success,
Michael Morrongiello

Land Contracts and Selling notes? How? - Posted by Woody (MI)

Posted by Woody (MI) on February 16, 2002 at 05:33:58:

Please forgive my lack of knowledge in this area. I am working a deal where I am offering to buy a property on a Land Contract with the idea that the seller would then sell the note to get the cash they need to pay off the existing mortgage. I need to know a couple of things about doing this. I guess that I can best ask the question by giving the example.
The house is a 3/1 Ranch, full basement, approx 1300 sq. ft per floor, on approx 1 acre. Payoff is about 55K including back taxes that have to be paid to keep it from being foreclosed on by the state next month. Comps on the property go about 110K ARV. Needs about 10K cash to fix it up. I thought about doing this as a Hard Money loan but really don’t want to due to the fact that I want to take my time fixing this place and making it stand out from the neighborhood.
Due to the fact that I would like to buy this as a personal residence I thought about offering them around 75K and have them sell the note and get enough to take care of everything. Is this something I could do? Would anybody be interested in this with this scenario or is it a waste of time? How do you notebuyers know that your investment is properly protected? Do you get appraisals or what?
Thanks very much for your time and any answers you can provide.