Posted by Russ Sims on April 26, 2000 at 01:42:38:
When a seller “takes back a note”, it really just means they take an I.O.U. for part or all of the purchase price of a property. When you give the seller an I.O.U., you really give them a promisory note that spells out how much you’re gonna pay and when.
Can you make money with notes? Just ask John Behle or Terry Vaughn…cruise on over to the paper and notes forum (the term “paper” and “notes” are used interchangeably) to see how a lot of people are making money every day by buying, selling,trading, and brokering notes. It’s a business in itself.
Hard money lenders are probably easier to find than you imagine. Start with the classified section in your local paper, and look in the “money to loan” section. A hard money lender ad might look something like this “MONEY LOANED ON REAL ESTATE EQUITY”. Check with some of your local mortgage brokers. Ask if they deal with any hard money lenders. Many of them do. Call a title company/ closing agent and ask if they can refer you to hard money lenders. They should know a lot of them because they deal with them at the closing table.
Good luck!