SELL NOTE
I keep getting email invitations to sell contract (s) I have a single family home on a lease purchase that I just closed on in March, I purchased for 98k and have lessee agreement to pay 108k within 24 months, I have security agreement of $5500/ via an auto lien, I have about $220/month positive cash flow, and a first mortgage of about 94k, these note buyers pay about 50-60% of value or so I am told, but is it customary for them to pay off your mortgage in the process or do they just buy your cash flow and equity rights ? I am considering taking a quick profit unless I still am on the mrtgage, any one have any experience in this arena ?
You need to be more clear.
You can only sell your note if it is owner financed paper.
How did you acquire the property? Do you have the deed, or this is a sandwich lease?
Note buyers pay much more than that for SFH, but I just don't see what you are asking. Do you have a bank note, and you think you can sell the bank's note - it's their note, and only another bank is going to be assigned that note, you have no control over that whatsoever.
Now if your tenant buyer went to get financing within 12 months and ran up against a title seasoning issue, then you can create an owner financed note at closing, AND sell it at closing for cash proceeds, though the discounts involved would eat up your back end profit, as this is a pretty skinny lease option to use that strategy, though it could be used to get you out of a bind, should you find yourself in one.
Best, Dave
Dave I own the home via bank mortgage.
I sold on a lease purchase contract, within 24 months I have sale with my now tenant or he loses his 5500$, he paid me upfront 2000 for option right, so I am considering selling that option , but only if I am able to get away from mortgage and that is my issue, I dont want to be holding all the risk, unless I get most of my money up front, hope that makes it a little more clear, thanks Tom