Posted by Michael Morrongiello on October 25, 2002 at 22:11:40:
S. Rod:
The Note you are contemplating to be created will not be readily sellable. Why not simply refinance the property and borrow the funds you need to do what needs to be done? There is really no need to complicate this transaction which can be very readily put together.
Michael Morrongiello
Sellable note? - Posted by S. Rod
Posted by S. Rod on October 22, 2002 at 14:38:44:
I bought my house for $107,000 three years ago. It needs renovation due to my growing family needs. It will cost about $100,000 to complete. ( add a master bed room, three bedrooms, one full bathroom- all on the new second floor, update existing bathroom, kitchen family room and rebuilt retaining walls for four car parking spaces).
Since my parents’s retirement money($350,000) is sitting in the money market collecting just 2% interest for past two years, I am wondering if I can put this deal together as follow:
1)I create a legimate mortgage note with my parents money to pay my existing mortgage and extra money for renovations.
2)Sell the mortgage note to recoupe the cash for my parents. I also hope to make some money on this deal to create other deals with it.
My question is:
Which books and courses can you recommend to do this deal?
How and what can I do to sell a long term note quickly?
Are there any other note deals that can be created?
Currently, comps of the house (3BR/1BA) in my neighber is $165,000. After renovation, It will be valued at around $285,000 (conservative figure).
I have good credit.
I appreciate any suggestions you can provide. I like to use this money as a learning tool and it will help me out at the same time.
Re: Sellable note? - Posted by Phong Le
Posted by Phong Le on November 10, 2002 at 18:58:47:
Why spend $100,000 or more just to get an additional $20,000 equity? This is too risky as you may be underestimating the total cost of the project. This does not even include emotional costs. You’re better off selling your house using the 1032 tax exchange program and buy a house similar to your requirements.