Posted by Nelson on September 26, 2006 at 12:25:32:
This is a common misconception.
You cannot sell a note that you are giving to someone else.
The someone else will be receiving payments on the note and therefore would have the right to sell it.
If you are in need of money, you can get a loan.
That is what you need, an investors loan, or hard money loan, to complete your rehab and pay the lien.
Now if you seller is willing, you can help create the note and then sell it at a discount to a note buyer. Typically here your face value of the note will need to be much higher than what the note seller will receive. And you will be paying on the full face value of the note, not on the discounted sale amount.
Creating a note - Posted by Garry
Posted by Garry on September 19, 2006 at 09:18:41:
Trying to buy 3bdrm home that needs total rehab costing $45,000.00 and a tax lein $25,000.00. ARV $200,000. There is no other mortgage on the property. I need to know how to structure a note of $65,000.00 to close the deal and rehab the property.
Re: Creating a note - Posted by Nelson
Posted by Nelson on September 21, 2006 at 19:05:04:
Why are you trying to create a note for 65K? 45+25=70, plus the 25K of the tax lien have to be paid at closing.
Are you only paying for the tax lien?
Who is selling the house?
You have left many details out. If you are more specific someone here will be able to give a better answer.
Re: Creating a note - Posted by Andrew
Posted by Andrew on September 19, 2006 at 21:32:41:
Why not just go to a hard money lender for the money?
Re: Creating a note - Posted by Garry
Posted by Garry on September 22, 2006 at 06:39:17:
I need $25,000.00 to pay tax lein, $40,000.00 to complete rehab.