NO money deals using paper are very feasible however it is best to have the owner financed note taken back in a FIRST lien position and at t a conservative LTV threshold. That owner financed 1st lien note then becomes marketable and can be converted into CASH.
To obtain a 50% LTV “hard money” loan that would be in 1st lien position and then have the seller hold a 2nd lien is another way to acquire properties with NO money down, however the seller held 2nd lien woudl be considered VERY Risky and have a very lmited amount of liquidity.
Is it possible to purchase properties with hard money up to 50% LTV and the seller taking a second on the remainig balance to be cashed out at closing? If this is possible what criteria are the note buyers looking for, as far as credit scores, and LTV? Am I looking at a large discount because there is no down payment from the buyer? All responses and ideas will be greatly appreciated.
Without a downpayment, with no seasoning and the fact that the note you want to sell is in second position you will, in all probability, take a major hit on the discount, if it is saleable at all.