Creating a 2nd - Posted by Sam

Posted by dealmaker on June 12, 2006 at 18:35:31:

It’s done all the time, every house I’ve sold in the past 10 years I’ve seller financed, all were first mortgages but prior to that I used to sell on wraps and seconds. If you want to sell and the buyer is getting a 80%-90% loan and you’re carrying a 20% or 10% second you’ll be in a pretty weak position as the buyer won’t have any “skin” in the game.

Of course the first mortgagee might not do the deal at 100%, they know it’s a bad idea.


Creating a 2nd - Posted by Sam

Posted by Sam on June 12, 2006 at 15:14:36:

Has anyone sold a house and then taken the profit in the form of a note (or a 2nd) instead of cash?
We want to offer owner financing for 10-20% FMV but the 2 lenders we’ve talked to don’t seem to understand what we’re talking about.
Any ideas or experiences to share?