Posted by DougB on April 06, 1999 at 17:18:04:
When you purchase partial notes and substitute collateral for the deferred part of the note, is it possible to use one property for several of these deferred payment notes? My reasoning for asking is a $50,000 note that doesn’t start payments for 10 years might only be worth $2,000 today. If I do 10 similar partials each with a $50,000 deferred note it’s not feasible for me to give each seller real estate worth $50,000 as collateral. I don’t have $500,000 in unencumbered real estate sitting around! Can I put 10 deferred payment notes on one $50,000 piece of property? Do I have to inform each note seller he is sharing the collateral with others? How do the Pro’s do this when they are buying many partials?
Thanks in advance for your help.