How to structure a note? - Posted by Lee
Posted by Lee on November 15, 1998 at 11:27:09:
… and how to find the market that would buy it ?
I bought a 3 br. 1 bath brick house in March, for $17,750.
cash at Sherrif Sale, totaly remodeled it: new carpet & vinyl
new plumbing fixtures, water heater, replaced rotten wood
outside, painted inside & out amoung other things.
It was appraised for $39,000 in June. Most of the people
I’ve shown it to want it but can’t arrange financing via FHA.
I’ve been working with a few buyers, trying to help them get
a B,C, or D (credit) loan, no luck yet.
I have missed aprox. $130.000 of potential profits since I
bought this house because my money has been tied up.
(I know, I should have used a credit line).
It’s time to try “Owner Finaning” I have never done owner
financing & don’t know the first thing about it.
What are investors looking for?
What interest rate ?
(I realize it depends on the borrower’s credit)
What % LTV ? =(Loan To Value)
What lenght of time? (I think I’ll have to go long term,
30 yrs., to keep the payments affordable.) I am willing to
take a second if I need to, but I want to sell the first.
What I have been proposing is $700.00 to $1000.00 down,
I would take a second for 10% ($3,900) and have the buyer get
a 90% LTV first.
Boy, I am missing something here!
One thing I have learned on this one…
Financing sells real estate!
Lets talk, can ya help me here?
Lee, in Louiaiana