Using a note to make a sale? - Posted by Glen
Posted by Glen on March 13, 2002 at 10:24:48:
I am just now learning about the note business. A seller wants me to help him sell his house quickly using seller financing. I can sell his house as a broker, an investor (flip as assignment or simultaneous close), or broker his owner financing note. House is nice, ready-to-move in condition, and should appraise around $185,000. He owes $125,000 first and $25,000 second. He needs the first paid at closing, but will sit on the second for a couple of years, maybe longer. He also wants $5-6000 cash at closing. A newly created note would replace the current first. However, I am trying to determine if this deal has a chance to work in the marketplace. This represents what the seller wants…now I need to tell him what he might get. With a discount at the time the new note is sold and a profit for me, the deal may be a little skinny. Any suggestions about working with this seller so everyone wins? Any potential problems?
Thanks for your help.