Note Buyers
I would appreciate some advice from anyone familiar with how note buying works, if I can make my senario work. I have a house financed by a private investor who is now very ill in the hospital. I need to pay off the note I owe him, but I do not want to sell the house for probably six more months. It is my model home. My credit will not allow a refinance (2 partnerships gone sour rurined it for a while). I'd like to find a way to sell his note and pay him off without reducing his payoff. Figures:
Have appraisal for $202,000 (done by mortgage company who said they could do a refi after looking at my credit but it never materialized), 4 notes (construction draws and one personal) totaling $152,000. I'd like to create one note for the $152,000 plus whatever the discount would be and then have him sell the note. He gets his total investment back and I think there is still enough equity in the home to do this. Yes, I know I'm giving away money, but this man has been so good to me it will be worth it. The payments are interest only monthly payments for 18%. The house is new, never lived in. I plan to sell it in about six months as that is when my new model home should be complete.
I need to know how much the discount is for note buying so I can see if I can do a note to allow for this, have him sell it, and get him all that I owe him plus be able to pay the discount for the note broker.
I do have one other possibility in the works, but I'd like to have a contingency plan 
Secondly, I plan to buy peoples houses who purchase a new home from me. I usually move folks in with a large amount of equity (e.g., $200,000 house will appraise for $300,000). I plan to take advantage of this by "swapping" equity in someone's old home for their new home (instead of giving it away). I've been promised the financing to do outright purchase of their house. And thanks to this site I'll certainly look at buying them subject to. Some I may wish to rent out/lease option, but I hope to rehap and sell most. Then I want to sell the notes. I"m basically hoping my equity swap will at least be a wash, with my goal of getting folks in my new homes. And I hope I can make a little cash now and then too. Two wins for me and a win for them. Thus I need to know about note buying so I can have the formulas to be sure my plans will work.
Any good book recommendations/education courses that address this would be welcome.
Thanks,
Terry
Look into buying "Paper into Gold" by Terry Vaughn. It is all about note creating, buying and selling. Good Luck!
I have a few links for Note buyers if you want. Email me and I will send them. See my profile.
Good luck