Using Notes To Finance the SALE

[ Follow Ups ] [ Post Followup ] [ CREOnline Cash Flow Q&A ]


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

Follow Ups:



Post a Followup

Name    : 
E-Mail  : 
Subject : 
Comments:


[ Follow Ups ] [ Post Followup ] [ CREOnline Cash Flow Q&A ]

CRE Online, Inc. © 2007, All Rights Reserved.
creonline.com