Can some explain this
This is the sale of a participation interest in the First Mortgage secured by this classical late 19th century architecturally beautiful property making it a potential rental or fix and flip opportunity. The Estimated Total Debt is $88,000 and the Estimated Property Value is $135,000. The note is offered for $72,900, of which we seek an investor to put up $18,225 and the seller will carry $54,675. The investor can utilize the preREO Program to have a local court appoint a receiver to repair and rent the home during the foreclosure process. Once foreclosed, the investor can keep as a rental, or sell as an REO. The investor is entitled to all the upside above repaying the seller their $54,675 plus a 12% annual return.
I understand that it’s being foreclosed on that someone is buying the note for $72,900 and needs $18,225 from an investor. What I don’t understand is the last part. The investor gets 12% on their investment but then it seems that the investor owns the property except has to repay the seller $54,675? Is this some kind of wholesale deal?