Use A Note For Downpayment?
From reading back posts, I have discovered that I can put a property under contract, find a buyer, offer owner financing, get a note investor to buy the note, and at closing everyone gets what they are suppose to get. It was also said that the note would be discounted for the buyer's poor credit/ability to pay.
I have a property that I may be able to use this concept with, and thought I'd run some hypothetical numbers by you all.
Seller wants $25K for down on $180K property. He needs no less than this for immediate cash, but is willing to carry back for the remaining $155K at 6% interest.
If the buyer has poor credit (let's say worst case scenario), what amount would the note have to be to net $25K, taking all costs/fees into consideration?
Also, what happens if the buyer doesn't make payments? How am I involved with that?
Thank you for any comments/suggestions/etc!
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