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Jackie:
I have some notes that I cannot buy from a lender, BUT there is substantial opportunity to make ample money using an option with the lender. I am very positive I can get them 70-80% of their value that will be acceptable and still make a profit. I have worked with this bank before so I have a good relationship with this person.
How did you pitch this to the lender so you can get paid? Did you just use an option contract, what did you use? Contingencies stated in the contract? And if there is a realtor involved on the listing is there any way around them not getting paid?
Thx-Vic
Hi Vic,
70-80% of value on a note is probably not a big enough discount to get any note buyers interested in this market. You wouldl need to be getting an option at 50% to sell at 55-60%. but I’m not sure that would be good enough now….
I don’t get options on notes and would not even want to in this economic environment. A judge could re-write that note, the terms, the interest rate or the balance with the new Obama rule.
Would you buy a note that could be changed by someone else and you have no control over it? NOT ME! And not any smart person.
What if you sold the note to someone for $100,000 and a judge said, nope we’re changing that to $75,000 with $300 a month payments. What would happen to the yield that note buyers expect? It would go right down the toilet. do you think they would be mad at you? You bet!
The new mortgage rules are almost an open invitation for people to default on their notes and file bankruptcy just so they can reduce their mortgage payments.
I would steer clear of notes completely.
I get options on real estate from banks. I use a simple agreement with a strike price and an agreement that I have a certain amount of time to “put up or shut up”
Sorry — I know this is not what you wanted to hear
Jackie
Vic
I assume this is a listed property. Just submit a contingent contract with the agent.
The bank pays the agent – not you – so there’s no need in trying to go around them.
You’ll get more deals done working “with” the agent than trying to squeeze them out of the deal.
Listen to the Real Estate Profit Secrets audio where Latron explains how he did a deal just like this. I think it is lesson 10 or 11.
Good luck! Let us know what how it turns out.
Jackie
Hank
I would be nervous about selling with seller financing in the future until I read the exact words for the new law.
If it applies to any home owner then I will have to stop selling with seller financing.The Obamanation has screwed that up for us.
Plan B — which is better anyway – is to sell the beneficial interest of a trust. This is not a real estate transaction so it should not fall under the law. But it will only take one time for a liberal judge to get in the middle of one of these transactions to put an end to this too.
There is ALWAYS a way to accomplish what we need to do and stay within the rules.
jackie
Oh, I am so sorry. I did not make my self clear! My fault!
I want to get the option on the properties, NOT the notes. I can’t buy these notes at a discount but I can make some spread if I can get options on the property itself. I ran a ad online on the property for 125k. Buyer is ready, qualified and ready to close! I had great respoonses on the online ad, and still more calls to filter through.
Now I just need to get the bank to give me a option at 90-95k. Bank is asking 110k but I know I can get them down to at least 90-95k. Even at 95k with option from lender there is a 30-35k spread.
Help on this please. -thx- Vic
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