Posted by Michael Morrongiello on August 29, 2008 at 18:55:03:
In Reply to: Creating Notes To Finance Several Purchases posted by Ron on August 28, 2008 at 10:48:18:
Ron:
There is NO equity "spread" in the "paper" your creating.If I undertand from the example you gave;
I have a home appraised at $200,000.00 and you will pay me 90% or $180,000.00 CASH for that home.
You then will SELL that home for its recent $200K appraised value, get $20K cash down from the buyer and take back (Create) an owner financed purchase money mortgage (or Trust Deed) and Note for $180,000.00
Where is the spread?
What you need to do is to drive a much harder bargain with the property sellers who are motivated and our looking for options. Then help/ assist them to sell their homes using owner financing as both a marketing and financing tool - thus creating a marketable Note which does have some "Spread" involve between what the Sales price / owner financed Note will be and what the property seller will accept in cash - WHEN they are able to convert the owner financed "paper" to a lump cash sum.
Best to your success;
Michael Morrongiello
www.sunvestinc.com
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