This might sound stupid, but.... - Posted by Paul

Posted by SCook85 on December 10, 1998 at 15:57:00:

I was going to answer the question then read your answer to it and felt I had nothing to add. Well said!


This might sound stupid, but… - Posted by Paul

Posted by Paul on December 09, 1998 at 18:32:43:

Can anyone explain to me what is meant by “paper” and how do you sell it. What is it that your selling, and how do you get it in the first place in order to sell it.

Thanks for any replies.

Re: This might sound stupid, but… - Posted by Stacy (AZ)

Posted by Stacy (AZ) on December 09, 1998 at 19:17:15:

Real Estate paper is usually in the form of a trust deed or mortgage. It’s the promissory note, or IOU, for a real estate loan, secured by the property. If you have a home mortgage you pay monthly to a bank, the bank owns the “paper”. Private paper is when the loan is between two private parties, such as a seller who carries a second mortgage to allow his property to be sold. He can sell this second mortgage (trust deed) for cash to a note (or paper) buyer. Then the new buyer will receive the monthly payments. Simplistic explanation. More in the “Cash Flow Forum”, visit that board.