Seller financing and note Buyers
Well I started buying properties 3 years ago or so and now I am up to 12 houses. When I first started investing I planned to buy and hold forever and live off the cash flow. Now I own most of my properties free and clear because I bought for real cheap and did the rehabs myself. I am beginning to think I should consider unloading some properties and stock up on some cash in the bank. I also have a other business besides investing. I listed one property back in November and have not had much action. I am now thinking that maybe I should try to market this property with seller financing and then if someone takes it I then sell the note at discount to a buyer. So I have a few questions. what discount will I typically have to sell at? What seasoning would be required by the buyer? How should I structure the note-are longer terms better or does it not matter? I did do some research on here but I wanted to see if anyone here does similar transactions and can offer pointers of how to structure the note so I it will be more desirable to a note buyer.
forgot to add- I deal in cheap properties under 50k. Is this going to be a issue to the note buyers as well?
Most Popular Reply
If you're holding the paper you can charge whatever you want.
If you're going to sell it then appraisal/comps come into play. I want to buy at a true 65% ITV max, not some # based on an inflated sales price.