Posted by Rick, the Probate Guy on August 19, 2008 at 10:11:35:
In Reply to: Rehabber looking to sell note on rental property posted by erin on August 19, 2008 at 09:32:24:
Wouldn't you be creating a note from yourself to yourself(?). Who would be the creditor that you would be indebted to? A THT? That creditor would be the one that would be selling the note, not you (as property owner).
I guess it could be done using different entities, but it may not pass the sniff test of many investors. Yes, I get what you're tring to do, but your challenge would be to get a prospective note buyer to "buy" into your plan.
Essentially, this would be in lieu of the note buyer actually making you a loan, correct?
As long as you don't live in the property, why not just find a private money lender and then hire escrow/title company to produce the docs? Give him the terms he wants (read that negotiate his yield), but NO POINTS or fees, so to stay clear of any applicable laws forbidding that in your state.
The advantage of engineering this up front is that you could design the features into the loan now rather than have a harder time trying to sell your customized loan features/terms to a smaller market.
Other comments?