Creating A Note
I have been approached by someone who needs $15K by Christmas. They want to have a third party create a note for $20K then sell me the note for $15K. The note would be @ 10 % interest with 1% payments with a balloon due in one year. What documentation do I need to cover my ASSets? A purchase contract, note and trust deed, anything else? I already have title insurance being completed today.
Seems easy to me give me a call and I will send the docs over...
Only thing is not to break California usury laws...
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Michael Quarles
"Marketing is the key to Successful Investing"[ Edited by IBuyHousesInc on Date 12/23/2005 ]
What California Usuary Laws do I need to ben aware of concerning this deal?
unless the loan is made thru a broker or it is a seller carry back, the maximum loan percentage you can charge is 10%.
And it is my believe that points are included in that figure.
Trying to go around that with a third party may work but I would caution you.
And in california you must give the borrower a 90 day notice of the baloon payment due date.
[addsig]
Thanks Michael for all of your help
I went to title and purchased that note
We used a third party and did a simaultaneous closing all done by Christmas, insured and through a title in order to keep all of my bases covered. It cost a few bucks but worth it. Once again thaks for all of your help. It is highly appreciated.