Using a note to make a sale? - Posted by Glen

Posted by Michael Morrongiello on March 13, 2002 at 22:07:15:

If you can locate a half way decent buyer, with at least 5% cash to put down or more, the numbers should work out. I mean, he can sell the home, pay off his existing first and possibly his 2nd lien as well, also obtain a few dollars all while you also EARN some $$$ as well…

To your success,
Michael Morrongiello

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.