Flipping Properties With Owner Financing & then selling the note to a note Buyer

Has anyone ever done the following: I want to purchase a house on owner financing, I then would like to find a buyer and owner finance to them and then sell the note to a note buyer ALL at a simultaneously closing. Is that possible?

:cool YES /NO OKAY now i need to explain //// i do something like this all the time !! WHAT you need to do is let the dust calm down at some point on your deal as you have a lot going on here

  1. you are buying on owner finance at a good price i would hope 50% no more than 70% of apprasial value ??

  2. you want to sell on a owner note to your found buyer hopefuly at full value with at least 5 % down!!!

THIS is where you need to stop and let the dust calm down a bit so all paperwork can get current !!

  1. you then find your note buyer for your note after 30 days // as the most you can hope for is about 70 to 80 % of your note face !!! THIS is why you sell it for on your note 100 % of value !!! AND if all was bought and done right you will come out with some money and move on to the next deal !!

I do about 2 to 3 of these a month // most of them are preforeclousers and i get my note from the seller to me at about 60 % of value with no payments due for 30 days !!

I then go to my list of buyers and match the best one up to the house show it and make the new note for 100 % of value and get 5% down this most times covers back payments on home with a small amount to the seller !!! IN 30 days i sell the note to my note broker at 75% of face value !! BUT if i have a good fico buyer who is at least 560 or above i get 85 %

I hope this helps you out some

I’m looking to implement this myself.

Could you give some details or an example?
It may have been me, but I couldn’t decipher the
way you explained it there.


Thank you for your reply. And Yes. I am buying the property for 180,000 and it appraises at 259,000. My concern though in the whole process is that if the seller has an existing mortgage and we go to closing and he does an owner finance, will it have to be a wrap-around I am assuming? And if so, it is recorded at the courthouse, what is the likelyhood the mortgage company will find out and then call the loan due? I am a note broker and I do these deals for people ALL the time, but never with an investor such as myself buying and selling at the same time. Only the seller selling and a note investor buying. FYI though, you sound like you know the note business. I work with approx. 137 investors most of whom will pay up to 93% with a credit score of 600-620. The worst I have seen is score of 540 at 75-80%, but score of 580+ I can get almost 90%. Of Course it all depends on the payor. But going back to the deal…so you buy pre-foreclosures, catch up the buyers payments and then the buyer owner finances to you? Do you pay their mortgage payment direct to the mortgage company? It seems safer if you did… Sorry about all the questions, I just want to make sure I understand. Any info is helpful!! Thanks!

:cool YES they can ask that the mortage be paid in full as it is a recorded sale of the and they have to be paid !!! THIS is why we buy at the price we do and sell at the price we do /// as a wrap will not get you away from a due - on - sale !!!

YES we buy preforeclousers and we catch up back payments this is the down we do on the real easte /// keep in mind most of our buys are from folks that have lost jobs being moved by company ect . SO they just want out with there credit in good standing and able to move on

YOU say you work with a group of investors looking for deals ?? I have a in as i have family living in one of oregons hottest markets // and it is not portland !!!

WHERE i have seen just in the last four months people sell a peice of real easte that was worth just under 300k at the first of the year and now is sold for 400k!!! I just do not have the big amounts of ready cash //// would like to find some or one investor to work with me on some fast cash deals buy and resell with in 6 months for some super profit !!!

Talk to the note buyer first and have them prescreen the buyer. They will do it, but they will require about 600 credit score from the buyer and they will base their discount on their credit worthyness.

:cool OKAY two things my note buyers and owner finance people work with people down to 500 and some below fico s // but all note buyers are differant WHY have you not answered my email to you ??

I’m sorry, I did not get an email from you…

I am a note broker and have been for 6 years. I work with scores as low as 500, but the deals that low are REALLY hard to sell. They prefer 585+.

Going back to your deal you mentioned above, my investors are not lenders, they buy paper. They only purchase notes. If you can create a note then they will buy it. Otherwise, they can not help you.

:cool okay thank you and i think we willo be doing some things soon !!! AS this is how we sell most all our homes is owner finance

A question on this how are there out look on seasoning do we have to hold the note for a while or will your buyers buy with in 30 days of note close ??

If they buy notes, they’re lenders. Maybe not professionally, but essentially they’re lending. Am I off base or are you just mincing words?

You can do simultaneous closing no seasoning but the credit should be 585+. If the credit is lower it should season for at least 6 months. ALWAYS, make copies of the payments so you have a record of when it was paid. These payments need to be made on time never late.

Believe it or not there is a difference. When lending money, the qualifying process is longer and qualifying is more intense. The investors we work with buy paper/notes that have been or being created by a seller and qualifying the buyer is much easier.

When you say preforeclosure…do you pay their back payments to catch them up and then make their payments directly to the bank before selling to an end-buyer? OR do you try to sell and do this all before they end up in foreclosure?

This is very interesting topic…
I have a scenario …

Let say I buy the house 90% of appraisal value with my personal credit. then I sell the home to a new buyer with complete owner finance. I sell the house 10-15% more than what i paid for and get at least 5% down with an adjustable rate increase 0.5% annually.

my quesiton is this: is there any notes investor out there willing to pay at least 90% of my new note. and cash me out from my lender.

:cool yes we try and get the payments and done as i said with the down from our buyer but this allways will not work as some are to far into the foreclouser deal

:cool iam sure there are but your new buyer would have to have a good fico i would be willing to say in the 600 s to get you 90 %

How long does it take to look for buyer?

:cool i know this is going to sound dumb but it takes as long as it takes i have found a good buyer in two days and other times i have taken aslong as two or three months