Option a property, create seller financing, then selling note to notebuyer.

Financing, Hard Money Lenders, Private Money
1

Ben Innes-Ker has an article called “Use Options To Minimize Risk And Maximize Profits.”

In this article he:

  1. Enters into an option contract on a property for $70k
  2. Advertises the property for $105k seller financing and finds a buyer.
  3. Writes up a 1st mortgage on $88.5k (9.9% on 30yr) to sell to a notebuyer for 97.4% face and pay off sellers (pocketing $15.5k)
  4. Writes up a 2nd and a 3rd to him for the remainder.

Has anyone done this? Does it actually work? What is the deal with notebuyers? What are notebuyers buying up notes at these days? This seems like a great stratagey if it works, so any information would be appreciated.

2

The last time I called around, many of them don’t even buy a newly create notes, some of them buy them at about 80-85 percent of face value. So I think these wouldn’t work in real world right now. By the way, anyone can suggest a note buyer that pay cash that high right now? I would be interested in if they are exist.