Advice on creating a note please - anyone ? - Posted by Jaydee

Posted by Michael Morrongiello on May 07, 2000 at 24:07:25:

Using notes to “crank” cash out of a property is considered not to be a “squeaky clean” deal in the note world. Most note funders want to purchase paper that was created as the result of a SALE, otherwise known as a purchase money mortgage or trust deed.

If you purchase a home for Cash, you now own it. If you create a note payable to some other entity or person, etc. for the sole purpose of trying to sell that note and convert it to cash, this is in reality like a cash our refinancing transaction. Note funders don’t like to play under these circumstances.

However if you fix up and improve the property and legitmatly sell it in an arms length sale transaction to preferably an owner user buyer, you have now created a VERY marketable piece of paper.

Michael Morrongiello

Advice on creating a note please - anyone ? - Posted by Jaydee

Posted by Jaydee on May 06, 2000 at 08:58:29:

Hello all ,
I am new at this note game and understand the basic requirement to create a marketable note with a reputable note broker . My question is : If I am buying a house for cash , can I create this note after the house has transfered into my name ( to recoup my cash )? Or should I find funding before I close , so that I do not use my own cash ?
I prefer to be the payor .
Any advice is most appreciated .