Posted by John on March 28, 1999 at 14:44:48:
I have read the post and also the artical from J.P. About How to create your own mortgage. However I do understand how to create mortgages which I do when we sell with owner financing, the part that I would like more detail on is creating a mortgage to buy our re-hab properties.
I would like to see more examples on how this is done. I’m in a mortgage state in which we use title companies, most of the time I don’t even use attorney’s, only when needed.
Example to follow: Re-Hab deal.
Buy for: $14,000
Misc. Cost: $ 2,500
FMV after repairs $50,000
LTV 65% $32,500
$32,500 - 30 years - 14% interest with interest only payments would be $379.17 - 6 months seasoning $379.17 X 6 = $2,275.02 - the term would be for 1 year, the investors yield would be 21.84%
What is wrong with this deal?
Would this note be marketable on ANN?
What about paying off this note within 2 months?, what would change?