Posted by David Butler on April 01, 2006 at 15:21:44:
Best way to create a note deal that stands up legally is to sell the property to an end-user in an arm’s length transaction, and carry back a note for part of the purchase price. The property buyer (Payor) makes the payments to you, or whomever you eventually sell the note to.
But… what you are describing here sounds essentially like a loan transaction. Generally speaking, you’ll find that “hard money” lenders are generally the funding source for the circumstances you describe above.
But the place to start is with your local lenders, beginning with your own bank. If your own bank is not willing to help you, be sure to find out why they won’t - and also ask them for referrals to possible lenders. Their answers to these questions will give you a clearer and faster route to move forward on.
BTW… you might want to post this up in the Real Estate Financing Forum, along with mentioning where you are located.
That will improve your odds of getting a response that might be more relevant for you with regard to your geographic location so far as possible lenders might be available for you.
Hope that helps, and best wishes for your success!
David P. Butler