Posted by Trout on May 31, 1999 at 22:13:33:
Hi everyone. I posted my dilemma the other night in the chat room and had a few questions about the specifics of structuring a note.
I have a seller whose only apparent concern is paying for his daughter’s college education which will begin next fall. She is going to Temple University which runs about 13K a year. The daughter is the actually the one who inherited the house, and the father is the one selling it. He doesn’t want to work with a Realtor at all and is open to the idea of a small down and monthly payments (with a low interest rate) for the next thirty years for his daughter.
I explained the idea of creating a note (with a small down) of which he could sell partial units to raise cash which would be used to pay for his daughter’s education.
I think I am aware of the requirements that note buyers look for when buying a note, however, I have never sold one. Is there anything that I should extra-careful of when structuring it? I heard that taking title to the property through my corporation might hurt the marketability of the note.
Any help would be greatly appreciated. Also, is there any alternative methods of funding college without digging into the note that I could proffer? If it were me, I would rather try to get a no- of low-interest loan to fund her education rather than dipping into any cash TODAY.