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.