seller financing- promissory note
Hello all,
I recently closed my first wholesale deal and have a few other deals in the works.
I will be closing on a deal next week on a property for 55k. It needs about 15k in work and has an ARV of 110k. I am paying 25k cash for the property at closing and the owner is holding a note for 30k. This amount will be a note between the seller and I, and I will want to refinance right away but I do not want our note to show as a first lien. I plan on having an attorney draft the note. Can I have a note drawn up with the property as collateral without it showing as a first lien? Also, if the owner trust me, and he does, would I be better off just doing an unsecured notarized promissory note?
Most Popular Reply
@Account Closed , you can do any of the things you asked about but only with the consent of the Seller, and you are right he would have to trust you to the point he is a real fool. You would essentially be buying the home from him for 25K$ and vague unenforcible promises. True you have a valid agreement but the property is not securing it, and if you decide to sell it for $55000, and run, he has no legal recourse but to try to find and sue you in Alaska or where ever you went to.