CREATING NOTES AT POINT OF PURCHASE - Posted by Tactikon

Posted by Tactikon on July 21, 2001 at 18:15:09:

Thanks for the advice and responese.I will check the web site you mentioned. Just finishing up CALCULATOR POWER!, Great book!

CREATING NOTES AT POINT OF PURCHASE - Posted by Tactikon

Posted by Tactikon on July 21, 2001 at 05:25:35:

I am a Realtor with several investment customers.One customer has been complaining of paying points on his “refi” when he pulls his money out of a purchase (his FICO is very high and he pays cash). After reading the advert on WORKING WITH REALTORS, it occured to me that I might be able to create a saleable mortgage note at closing that would lower his cost , give me Realtor’s commission and also give me a broker’s commission.He buys SFH, 3BR, low crime,in working or middle class neighborhoods.He has his HVAC , termite inspections ,etc., done.These are usually REO’s or wholesale properties that I get him off of the MLS with less than $4,000 work needed that he usually does himself.He averages about 1 or 2 a month.Appraisals come in without a problem as I usually can get them for 80 cents on the dollar.Rather than buy another course that would take me a few weeks to assimilate, I’m looking for advice on who I might work with that could deal in this way and help me set up the note for the closing.The mortgage brokers are just middle men and the notes just get sold to Fannie and Freddie anyway ,I guess . Any Help out there?

CREATING NOTES AT POINT OF PURCHASE - Posted by Jon Richards

Posted by Jon Richards on July 21, 2001 at 14:58:44:

Mr or Ms Realtor,
I have found that when you create a note at the point of purchase, and then sell or part of that note to an instutional note buyer, you do not save any money over the standard bank loan.

However, the note buyers may have softer lending standards than banks, esp on commercial deals.

Most importantly, when making a note to sell to an institution, you can be pretty creative with the terms. For example, you can create a note with increasing payments, or a note with no payments for the first year, etc. You are only limited by your creativity and needs of the buyer and seller. Note buyers are used to buying all types of notes.

To see how we work with Realtors and FSBOs go to our web site at www.create-a-mortgage.com. This site is advertised to local brokers and has worked well for NoteWorthy in helping to develop the simultaneous deals.

Good luck and feel free to call me if you need more information.

Jon Richards
Publisher of the NoteWorthy Newsletter
www.noteworthyusa.com
415 824 1864