[Tim Myers]

Tim Myers

hey everyone,
I currently have a potential deal in the works where i can make a nice profit. I have an out of state owner that inherited a property that is free and clear. He had it rented out, but the renters trashed the place. I tried negotiating to buy the home with seller financing, all cash, everything under the sun. But we could not agree on anything. I told him i might consider lending him 3k which is what he needs to get it up and running again. I will then get a note on the property that says he owes me 6k in one year. If he cannot pay me back in one year then it goes to 9k for year 2 and so on. He plans on selling the home within the next year

Game Plan
1. secure the note by a deed of trust, then wait to get paid
2. sell my note to an investor i know that likes to get returns of 10%. get my money back plus 1,000 -1,500 and move on

questions
1. do i have to get an attorney to write up everything? note? deed of trust?
2. If I sell the note, all i need is an assignment form?

thanks for all the help!

[Anonymous]

Anonymous

Tim

I would nto do the note deal — although the yield is good

I think a better strategy would be to WAIT for the seller to get motivated. Time and circumstances has a way of changing everything.

Remember, price is not as important as terms

Jackie

[Adam Olsen]

Adam Olsen

Hello Tim,

What about doing one of those two game plans you listed above AND wait for the Seller to get motivated? Especially if there is a good LTV on the place.

If he is out of state and has had problems once, seems the chances are good he’ll see the same problems down the road.

Hope that helps,
Adam

p.s. Maybe put the loan in an IRA? Go for the tax-free gains….