How-to sell the note? - Owner Finance - $150K- down payment

General Real Estate Investing
1

I have a potential here and I will find out by this Saturday when we meet face to face just how potential this is. Here is the scenario.

The house is purchased for $230K and then sold for $300K with $150K down and take back a note for the remaining $150K. Not a problem. Oh and yes, I could not believe it either when they told me they had $150 to put down.

I take my $70K right off the top and apply the remainder to the mortgage I have which then leaves me with a break even note.

What are my options in order to sell the note? I would prefer to get rid of it and move on to the next deal, however from what I can tell of the note business it is the “discounted” note business.

Suggestions?

Thanks,

Norm

2

Despite the apparent nice loan to value, you may have a hard time selling your note until it seasons.

3

Thanks Paul. I don’t have to much of a problem with that. Anyone else out there have a suggestion? I am leary of keeping the property to long, since I know where I live there are laws on how much a person can lend before they are required to become a licensed mortgage broker. And if I recall that number was quoted to me at something like $2 million in residential homes. For me, that is to much like work to go through all that hassle and to much commitment :smiley:

4

You could actually try to sell it now, if the buyer is solid - good credit and income, etc. But you would take a huge hit on the discount - maybe 50%. However, if you let it season for 6-12 months so the buyer can develop a history of solid pay, that ratio should go up fast.

I have some discount note buyers I’ve worked with in the past. I’ll PM you with a request for more info.

Good luck.

5

Thanks, Salverston. I look forward to hearing from you.