Buying A House... Question On Notes
Would this be a normal thing to do? I am buying a house for $69k. The seller wants CASH. She is doing contracts on all of her other properties but this one is her "bread and butter". She's fairly motivated but needs the cash. Would it be possible for her to sell it to me and hold back a note, then have a note buyer immediatly buy it? What kind of discount are we talking when people buy notes like that? The problem I'm having getting a loan is that my mom and I haven't claimed income taxes since I work for her at a family business. We are just now starting to, and I just started another part time job. When it's all done, at a $500-$550 a month mortgage payment I'd have a 25-30% D/I ratio. My credit is blank. I will also have a roommate paying half.
I guess I'm just wondering if I could have a note buyer buy the note from her immediatly at sale so she gets cash and I get the house.
Thanks,
Chase
55 to 80%
Yes note buyers can do a simultaneous close. Which means they will buy note at closing. These notes have a tendency to have a higher discount since there is no seasoning to speak of. Maybe if you did a 10-20% dwn pmt and add in a 5 to 7yr balloon you may get a higher offer for note. Just food for thought.
Mark
Many of the notes that I've bought were in escrow.