Posted by Sheik on June 17, 1999 at 09:19:20:
You didn’t mention how much down pmt (if any) you’ll
get from your buyer…
From what I know about these Simo deals, a note buyer
will typically go up to about 80% ITV (Investment to Value).
One way to structure (it will depend on the credit
worthiness of your buyer) is as follows…
You need to get approx 10% (or more, of course)
down pmt from your buyer (Approx 15K).
Create a 1st mortgage for approx 80% of the FMV which will be approx 119K. If structured right, you should not have to discout it much. Create a 2nd for the
After selling the 1st you should have approx
$119K + $15K - discount - other costs.
At closing you should be able to pocket a few Gs.
You will also have the 2nd paying you monthly.
Hope this is somewhat clear.
Click on the American Note Banner above - they buy
these types of notes and will advise you on how best
to structure your notes to make it worth more.
Also there is a similar deal done by Ben(IN)
described in the Money Making Ideas section or the