80-10-10

we are getting back to a time when the old 80-10-10 will work real well!

Comments(6)

  • ypochris21st December, 2007

    Could you explain the difference between an 80-10-10 and an 80-20?

    Thanks,

    Chris

  • joel21st December, 2007

    80-10-10
    80% first mortgage 10% down 10% second mortgage

    80-20
    80% first mortgage 20% second

  • rehab2day21st December, 2007

    Could you expand upon your comment? It means little and generates even less discussion w/out context.

  • michiganmoney21st December, 2007

    The idea is to use a 2nd. mortgage to get the LTV on the first mortgage as low as possible. It could be an 80-5-15 or what ever combination you need to keep the first at no more than 80% of the total purchase price. As long as you make a profit on what you cash out the 80% first for, you are in business. Keep the second for cash flow and move on!!!

  • michiganmoney21st December, 2007

    Credit is also crucial in this day and age and there is not much of a market for notes where the payers credit score is less than 600. Same as the conventional mortgage market. In general, the lower the credit , the more skin in the deal on behalf of the buyer.

  • cjmazur21st December, 2007

    I have never met a note broker/buyer that would buy a fresh note at a discount I was willing to accept.

    Just drop the price by the discount and do conventional lending.

    There was the thread about the 81K note going for 76K optimally.

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