selling a note question

i’m trying to buy a fixer upper with seller financing since most banks won’t finance this. is it hard to sell a note at the closing table if the house is vacant and will be under rehab for the next few months?

maybe i should reword this? if my seller wants to sell his note asap would the buyer of his note care that the house attached to that note is currently under rehab? is the condition of the house taken into consideration when buying a note?


If you are planning on selling the note for this fixer upper it is best to do the repairs, get a fresh appraisal, then sell the home. Note buyers will be very tough to find, willing to buy a note on a fixer upper or rehab project. To many things could go wrong and the risk outweighs the reward. Note buyers absolutely take into affect the appraised value, condition of the home, mortgages on the home, neighborhood, etc.

Its very possible to sell the note at closing using a simultaneous closing of the property and the sale of the “paper” once the property is completed. I have note investors that will buy notes on non-owner occupied and taken as an investment property. Fix the property first and then owner finance it. Make sure to structure then note correctly if you plan on selling the note to a note buyer. Otherwise you may have to take more of a discount than you want. Good luck,


thanks for the response nate,
i’m thinking of trying to BUY under a seller financed deal. trying to put myself in the seller shoes. if i could explain to the seller that he could sell his note right at the closing table then he might be for it. but if will be hard to sell since the house will be getting some work done then… maybe the seller might be less enthused.

Have you thought about creating your own note?

Have you thought about asking the owner to subordinate?

Have you considered a L/O with no or minimal payments while you fix it up?

Have you considered hard-money to fund your repairs and your holding costs?

Have you considered table-funding with a refinance once the rehab is complete?

My suggestion is to maybe have some type of agreement with the current owner and fix the location first. Once fixed, sell as is and split with the owner and agreed upon amount.