Note Buyers?
Maybe someone here can help-
I am looking for note buyers that would consider the following types of deals:
I am buying homes extremely cheap and rehabbing them and in turn making them Section 8 rentals. I then owner finance these (no money down) at 75-80% of appraised value to investors. These investors take title in a company (LLC or Corp) and the loan is made to the company with the property being the primary collateral. The notes are Cognovit notes but, as stated before, are secured by the property but also by the credit of the individuals (700+scores). I can then setup servicing of these loans thru various companies I know.
A few questions:
Do you see any error in seting deals up this way?
What would a note buyer likely pay for this type of note?
make it a recourse or partial recourse note would make it much more attractive.