Marketability of rehab loans? - Posted by KT

Posted by Jeff Cooper on November 03, 2007 at 08:59:15:

in mississippi property 65000 paid off wants to ad room and sell

Marketability of rehab loans? - Posted by KT

Posted by KT on October 02, 2003 at 17:03:46:

Hello all,
My company does full rehab re-construction on distressed homes for investors who usually flip the homes once our repairs have been completed. Sometimes we offer creative financing for the investors if the deal has a lot of profit in it. Such as deferred payments or splitting the profits on the resale in exchange for our labor.
What I would ultimately like to do is to create a 2nd note on the property we are working on and sell it once the project has been completed. My question here would be the marketabilty of these notes?
As I see it the positives would be:
-Low CLTV, usually around 50%-60%
-Most investors we work with protect their credit score, 600 and up
-There is usually money down on the purchase.
-Would be able to charge a good interest rate.

Negatives to me:
-It’s not a 1st note
-The house would be vacant until it sold

Anyone think this plan may work for me ?
What kind of discount would I be looking at ?

As usual any thoughts are appreciated.