Note Buyers for Retail Flip - Posted by Peter

Posted by ski on June 05, 2006 at 19:36:48:

The “worth” of a house is not what you think but rather what you can get.

Note Buyers for Retail Flip - Posted by Peter

Posted by Peter on June 04, 2006 at 20:58:23:

I’m interested in offering all cash offers at 10% below FMV on houses in good condition and then offering owner financing for the purchase to my end buyer. Where do I find note buyers that will cash the note so my seller will get cash at the closing?

Sounds like a formula for going broke - Posted by JT-IN

Posted by JT-IN on June 04, 2006 at 22:31:25:


There have been some markets in the past 10 years where this may have worked fantastic… However, today is NOT the market in all likelihood. Your question is so general, depending on which part of the country you are located, but all too many markets are currently experiencing a slowdown and downward pressure on prices. If this isn’t your market now, what would keeep it from being your market in 6 months or a year.

Prices have softened, or even dropped in many areas, so had you employed this strategy in one of those markets in the past 6 months, you could be under water, now owing more on the house than it is worth… It is highly unlikely that a Note Buyer is going to play by your rules… as most of the Note Buyers out there, (who are seriously doing deals like these), aren;t offering you or me anywhere near face amount for unseasoned paper… so I think you need a new plan…

Right Church, Wrong Pew… as they say. = Good idea, but wrong economic time in most areas of the world.


Re: Sounds like a formula for going broke - Posted by Peter

Posted by Peter on June 05, 2006 at 14:25:26:

Hello…Thanks for your response. I’m located in a seller’s market (the Washington DC metro area). Housing prices are high and properties are snatched up very quickly. Have one rental that has more than doubled in value in the last 18 mos. Most sellers don’t seem to be interested in L/O or sub-2 deals. They want cash and their properties move pretty fast. I see one fixer property that is basically a small shack, worth no more than $15K but the asking price is $135K. What methods and strategies would you recommend for this type of market? Thanks.