Create Then Sell A 1st Mortgage
I was wondering if my dad creates a 1st mortgage for my house say like $40k at 9% intrest paid for 30 years. Is it possible to sell this note to someone even though it is unseasoned? and what kind of money would he be able to sell it for on avg.
The house right now is owned by me free and clear but i can not go to a bank with a 400 credit score and get a loan on the home atleast i dont think it is very possible til i clean it up anyways.
Any info on how to get some funds or create and sell the note would be appreciated.
Thanks
CEOTodd
The notes value is based on the payor (you) and not the payee (your dad). This would take a good hit in order to be purchased by an investor - probably only worth 20K because of your credit. Tell us a little more about what you are trying to accomplish and we might be of more help. How much money are you trying to pull out, and for what purpose?
Ok what im trying to accomplish is to use the money to fix up the home and sell it. Right now I own it free and clear it is worth 45-55k when fixed up.
I have 20 years of home improvement exp behind me and can easily do the work with my crew of workers, we estimate that it will take us less than 30 days and 13k to do the job.
When the house is completed we will be selling it as an auction and will use the funds to pay back the loan and the rest will go in our pockets to do another home with that Im looking at next. Im happy making $5k profit on each home if that is all I make per month and thats our low ball figures.
Thanks for any help you can provide.
What you could do is get a hard money loan for the repair cost. Go to the RE club meetings and you will find them.
I did forget this. Be prepared as a pro. Have pics of the property a list of repairs and cost of materials. [ Edited by lacashman on Date 11/25/2006 ]
However, if you go hard money, make sure you can sell the property in time.
Hard money goes for 3-6 months at a double digit %...
Shop around for the best loan for you...
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[ Edited by JohnLocke on Date 11/25/2006 ]