Discount Mortgage Note
Here we go:
I am working a deal (rehab) on a property that is held in trust for the local Lion's club. property empty, not liveable, needs 30K in repairs, empty for a year etc. etc. etc.
I have an end buyer at a set price for the fixed up property with private financing so no problem there.
I will be presenting a check for 40K along with the offer in the hopes that easy money will make the sale.
However here is plan B and where I get out of my depth a little.
If they won't accept the 40K and want more $$ I plan to pledge the following.
I have access to a note as follows
for $76,000 at 8.5% making the monthly payments
>$584.37 It is due August 29, 2007 Is started August 29, 2002
This note is current and secured by a second on a fourplex (value $250K +-) in Salt Lake City.
The holder has mentioned interest in selling it
for $40,000-50,000.
I would like to exchange the note for the deed to the house but....
I do not want to give them all the profits. How would I give them "partials" on the note? i.e. $60,000 worth and then I would take back the remaining $16,000 at the balloon and or sell the 16K note for say $10,000 discounted? I think this would be feasible as the payments on that portion would be just over 4K and with the ballon would make a return of +- 20K a 33% return for an investor and improve my cost basis on the property.
Is this something I can do for myself? or are there people that will help structure it this way for a fee?
I am trying to learn about the note business but there is so much to learn!
[ Edited by Stockpro99 on Date 02/27/2004 ][ Edited by Stockpro99 on Date 02/27/2004 ]
In the midst of the deal right now. I will try and contact as soon as I have time.
Randall