Terry and other note gurus --- Pls help how to create a note (purch money mort) - Posted by Jason Perry NH

Posted by Michael Morrongiello on March 23, 2000 at 11:43:52:

If you are confident the home will appraise at $191,000.00 and that you can sell it for that price to a “retail” owner user buyer who will occupy the home as their primary residence then there are several ways for you to assist this seller and profit. Here is one idea:

Get her under contract for her $151,000.00 sales price ALL CASH (or negotiate the best and lowest purchase price you can). Build in some time for inspections (10-14 days) and also an extended closing date 45-60 days out.

Now, once the seller is under contract market the Home AGREESIVELY to a “retail” buyer using our Owner Will Finance AD suggestion.

Screen the calls and find the BEST buyers you can that is willing to purchase for the $191,000.00 sales price and can put down 5% cash or preferably 10% cash and who also have good employment stability and credit.

NOW, we structure a purchase money mortgage and note with terms that are acceptable to you and these buyers for the $171,900.00 amount still due.

This note if structure properly can be liquidated at the time of closing for 93%-95% of its balance in CASH.

Along with the buyers down payment, and the cash funded for the mortgage we would then pay off the motivated divorcee on her $151,000.00 - the rest of the funds are PROFIT.

Michael Morrongiello

Terry and other note gurus — Pls help how to create a note (purch money mort) - Posted by Jason Perry NH

Posted by Jason Perry NH on March 23, 2000 at 11:09:04:

At the conference, Terry mentioned that you can create a note on a home you are going to buy and then you can either sell it with owner financing or lease option it if there is positive cash flow…Right? I was not positive I grasped it.

So would this work???

Very nice home in nice neighborhood needing $5000 at most of fix up. She is divorcing at this time and needs to sell the house. Mortgage of 126k conventional, wants 25k cash to buy another home = selling price of $151k or so(she will move down with offer i bet).
This house will sell for $190k.
Beyond all that, could I create a note for $175k (I’m not sure of the figures) and then season and sell it for ~~~~$160k or something— and pocket the difference?

Terry, Ed, other note masters, can you help me? Or tell me what course has this in it…
Thanks again everyone.
Jason Perry