buy cheap,sell with terms, then sell the note?? - Posted by Tommy

import · October 13, 2010, 4:12pm

Posted by Tommy on October 22, 2010 at 10:52:50:

Thanks John. What % down do you suggest I shoot for? What minimum credit score?

import · October 13, 2010, 4:12pm

Posted by Tommy on October 13, 2010 at 16:12:32:

I just listened to an interview about a technique to buy $5k houses that are not in terrible condition, sell with owner financing with $1,000 down to a buyer with decent credit. The exit then is to sell the note to a note buyer for around 25 to 30k. Anyone on here ever done this?
I think the guru’s name was Goins

import · October 13, 2010, 5:52pm

sell the note?? - Posted by Kristine-CA

Posted by Kristine-CA on October 13, 2010 at 17:52:42:

You don’t say what the property is to be sold for. Note buyers want a
good value, supported by comps. Note buyers want payors (the buyer)
to have made a decent down payment. Note buyers want to buy
seasoned notes (one that have a history of decent payments). Note
buyers often want decent credit, or a large discount to compensate for
the credit issue. What buyer has decent credit and can’t do better than
a seller carryback on a cheap house with virtually no down payment.

I don’t know Goins, but you can be sure there is lots missing from the
upsell progandanda.

import · October 13, 2010, 6:10pm

Re: sell the note?? - Posted by Tommy

Posted by Tommy on October 13, 2010 at 18:10:00:

Thanks. I think his suggestion on the call was to sell for 30k with owner financing($1,000 down, $390 per month) and sell the note for around 20k. I likely missed some specifics but that was the jist of his pitch.

import · October 15, 2010, 12:16am

Selling new note not so easy - Posted by John Merchant

Posted by John Merchant on October 15, 2010 at 24:16:04:

Sounds like your friend Goins is trying to over-sell you on the ease and simplicity of selling any new note.

In fact no intelligent note buyer is going to be interested w/o these things: good credit on buyer, good down pmt by buyer, provable value of the property as being maybe 40% or better more than the note and some months of on-time payments by buyer…then that note buyer (not you)will determine what he’s going to offer, IF ANYTHING.

With only $1000 down pmt, I’d offer nothing as that’s not enough down pmt to commit that buyer to staying and paying.