Posted by phil fernandez on January 29, 1999 at 13:11:11:
AJ,
You line your note buyer up ahead of time. Before your actual closing. Then you have a simultaneous closing where you give the created note to your note buyer. He gives you cash. You give the cash to the seller of the property you are buying. Everybody then is happy. You get your property. The seller gets his cash and the note buyer has a nice note where you will be giving him his monthly mortgage payments.
Questions on creating your own notes - Posted by AJ - Oklahoma
Posted by AJ - Oklahoma on January 29, 1999 at 12:47:57:
I read J.P. Vaughn’s “How to Create Your Own Mortgage”, but I have some questions (I have a thick skull so be patient).
How is the mortgage created in escrow? Do you prepare the note and then turn it over to the closing agent?
How do you create a note against property you don’t own? Seems like you would be lending money to yourself? I understand seller financing, but if I read this piece right the seller is not involved at all.
How do you present this note that you just created to the investor? I would feel kind of odd saying “I really don’t have any money for this property, so I typed up this mortgage with myself as the borrower, and I want you to buy it.”
I have a nice little house all picked out to buy next week and this would be a great tool to use if I could just get the cobwebs out of my head and understand it better.
Thanks,
AJ
Re: Questions on creating your own notes - Posted by SCook85
Posted by SCook85 on January 29, 1999 at 16:03:02:
AJ,
It is difficult to find the people who do this. I for the longest time did not think it could be done. Essentially you are find someone to borrow from. I was not successful in doing this on a national level but have been able to pull it off on a local level. Find out if there are any private investors in your area, they may just lend you the money if they don’t understand what it is that you are trying to do.
SCook85