Can a person create a note to generate cash for down payment???
If so, how doe’s it work?
Im looking at needing to generate $15,000
A note is a loan…
who are you borrowing $15,000 from? or are you selling on owner financing and selling the note?
This is a thought for creating $.
I want to know if i were able to give a seller a note for say $20,000
Can it then be converted to cash? Say $15,000?
Is it better to make smaller notes say 2 & 3,000 to get cash ?
Just trying to figure this note business out.
that would be loan fraud 
fadi, thanks for the insight. Now can you help me understand where fraud comes into play?
If i give a seller a note for $20,000 can he sell it for less? Say $15,000?
Im not sure i explained it right the first time.
if you are buying a property for $50k, give the seller a note for $20k and get a loan from a bank for $65k, then it is mortgage fraud. Unless you get the bank’s approval or at least disclose it to them.
if you are buying on owner financing, then it is between you and the seller
if you are getting a loan and plan on giving the seller a second for $20k, if you do not disclose it to the lender, it could be treated as silent second and thats also fraud, if you disclose it make sure the bank will allow a seller carry back. I’m not sure any still do.
it all depends on what you are doing, from what I understood, you want to create a note and increase the purchase price for you to get some cash at closing.
If you create an unsecured promissary note then no one will buy it. Also 2nd position notes aren’t worth to much. I guess I’m confused as to what you’re trying to accomplish. Herbster
I have a seller who will carry the loan. He owns it free and clear. But he wants some cash,
$10,000. Purchase price of $70,000 I thought if i give him a note for say $20,000 can he sell it for say the $10,000 that he wants. Im using the $20,000 as a number for thought not a specific amount.
Have no intentions of commiting fraud, for any deal or reason. Just triying to give seller what he wants to close the deal.
Im trying to see if its possible to do this?
LOOK BACK AT POSTS
If the funding is comming from the seller and the seller only then this deal is buyer /seller
If theysellr is willing to take the owner carry then sure go for it
But if the note is not in the 1 st it will be worth less then less
And then what about the rest of the money on the sale
The seller will sure get his 10 K with sale of the 1st note of 20 K
But how are you going to pay the rest of the money to the seller his 50 / 60 k left a seller 2 nd ?
Sounds like you are trying to find a way to buy this with nothing out of your pockets ?
If this is the case and most sellers find out the deal will be dead
As you have no skin in the game
And most note buyers want to know what the buyer has put in to the deal
If they find you have nothing they will pay even less for the note / if they buy it at all