Posted by JohnAz on June 21, 1999 at 24:10:32:
On deals like you mentioned above…small notes secured by seconds, or thirds on their property what all is involved time and cost wise to accomplish this?
I wouldn’t think there’s room in the profit for doing an appraisal, or having title insurance.
I ask because having worked in the Contractor Sales department of a Building Supplier I just happen to know many builders, roofers, etc. and have often thought of approaching them to finance some deals. Knowing that the builders have charge accounts to float the cost of materials a way of financing may be able to be worked where they would release the note with some funds now and some later. This would be a way to increase yields, at least on paper.
My concern is what you can do with a handful of these small notes. Would there be a market to get a loan against them? Would small notes be saleable?
Back when I was doing some construction work I know I could have easily more than doubled my business if I would have had access to someone to finance my customers. I was doing small 2k jobs. Financing would have opened the door to major projects. I think this is something worth pursuing… I just don’t know how to work out the details so everyone is protected.
Thanks for all the info! (PS:Just got the video tape series Saturday. Haven’t seen the tapes yet, kids are out of school, but I’ve already been thru 3 of the books! Great info…got my motivation running in overdrive!)