What Am I Looking For?
Where would I get more information about this type of investing:
I think that it would be classified under notes, or paper investing.
I own a home fully paid off. I offer the note to an invester at x% and x terms in years.
for example:
I own a home for $50,000
I offer the note for $50,000 at 10% interest for ten years
with monthly payments at around $660 secured by the property. I still control the property and receive the rental income and after I pay the monthly payments to the investor I have a small cash flow and control of the property.
Where would I find investors that would be interested in this?
Are you doing this only in California?
No, Out of state, in areas where you can find homes for under $50,000
Quote:On 2005-12-07 23:36, dungbeatle wrote:
I own a home for $50,000
I offer the note for $50,000 at 10% interest for ten years
with monthly payments at around $660 secured by the property. I still control the property and receive the rental income and after I pay the monthly payments to the investor I have a small cash flow and control of the property.
Where would I find investors that would be interested in this?dungbeatle,
What you are proposing is a cash out refinance. Banks and mortgage lenders do these all the time at rates a lot less than 10%.
What is not apparent is why you would want to place a mortgage on a free and clear property and use all (or nearly all) of your cash flow for debt service..
Thanks a million for your info!
Many of my customers have purchased homes witht his type of financing. Given your situatuion, its an excellent way to minimize down payment.
YOu do have an option of refinancing both the first and second at some point, which should lower your monthly payment, or keeping the first, itf its an attractive rate, and paying down the second.
As you improve your credit, and the better it becomes, the more options you will have.