Posted by Rich-UT on October 09, 2007 at 19:11:58:
John, you are the man! Thanks for the info.
bank loans on my note? - Posted by Rich-UT
Posted by Rich-UT on October 05, 2007 at 13:10:22:
I bought a note course where the author mentioned getting a loan from his bank secured by payments from his notes. Has anyone ever done this? If so, can you tell me a little about it because I am hitting some brick walls in my discussions with banks.
I am pretty new to the paper arena and could use some pointers. I have a monthly cash flow of $1700 from my rental properties. I was thinking about making a note in order to get more properties, using my rental cash flow. I’d like to get about $81,000 out of it with a balloon of $80,000 in 60 months (but no pre-pay penalty). Am I crazy? I’d rather just have the bank give me an advance if possible.
I’m not trying to sell my note here! I just need advice on how to do this. Thanks in advance!
Re: bank loans on my note? - Posted by Jimmy
Posted by Jimmy on October 07, 2007 at 05:54:21:
I have an LOC secured by notes. issued ar 2/3’rds of face velue and around 9.5%. not the chealpest money, but its nice to have it available.
here’s the rub. the act of hypothecating the notes triggers all the internal gains (i.e., it dq’s the notes from the installment method of reporting).
smaller banks are probably your best bet.
Re: bank loans on my note? - Posted by John Behle
Posted by John Behle on October 05, 2007 at 20:21:00:
First, see the answer just below about hypothecation. I talk about how to work with banks in that post. I’ll come back in another post to give more detail to your particular post when I get a minute.
Re: bank loans on my note? - Posted by Rich-UT
Posted by Rich-UT on October 09, 2007 at 19:09:10:
Amazing! Thanks for the info. I’ll remember you at Christmas.