Re: My hard earned money on a 1st Mtg.? - Posted by Mark-NC
Posted by Mark-NC on January 21, 2000 at 11:41:41:
Right off the top it looks like a decent return. My only concern is if they own it free and clear why don’t they get a cash out refi at the bank? I would try to find the answer to that question and, what is their credit and job stability like.
One other thing you could do to protect yourself in case you ever need the cash back is write the note for about 10% more and discount the amount you give to them as points on the note. This way if you ever wanted out of the situation you could sell the note and recover your intial cash on the deal plus the interest you made. If you do decide to sell it later on make sure you have excellent records on their hopefully timley payment history, it will greatly increase your chances of selling the note for a good price.