Creating Note To Sell At Closing
I have a construction loan on a property of $70K. The house is worth 90K. Can I sell the property owner finance for 90K, putting 5-10% down then sell the note at closing for 76,500? Can someone walk me through this. Thanks
So I would create a note for 81K. What would a note like this sell for on average? Thanks
apexnotes is correct, if the buyers have absolutely stellar credit, a great income and a decent down payment...then you might have a chance at getting about 75-76000 for your $81000 note.
There are a lot of things that go into consideration for buying a note. I work with a note buyer who claims they pay top dollar, and according to them thye have a program...similar to the ones underwriters use to appraise loans. They look at several major components...
They (at least the one I am working with) are very weary of "subject to" deals because of the potential for loss. They said there were cases where the investor bought a house subject to, then sold it subject to...collected payments but never paid the original loan...however, they used the payment history of the end buyer to sell the note. When the lender foreclosed on the house the note buyer takes a major hit.
Anyway, Credit Score, Debt to income, Time at current job, note seasoning, own payment, ect...all come into consideration when pricing the value of a note.
PM me if you need any more help one on one.