Selling a Second Lien Position
Hey Alex!
I know a little bit about creative financing but my husband is a pro.
If you want to reach out to him and see if he can help guide you feel free!
Send him a DM on instagram or Facebook. @brandonvezzoso
-Lexey
@Alex Booth
We are very familiar with notes. Never ever ever ever write a note at 0% interest
First the government will still tax you. It’s called imputed interest and follows AFR
Also you will Get probably 20-40% of amount owed if you sell it on the secondary market
For a second lien position 9–12% is where you want to be. If you had that type of rate you should get 90-100% of what is owed.
Remember house values do go down and if the house were to ever go underwater and borrower files bk your loan could be crammed down or stripped (worthless) on a second position note.
Be happy to tell you how to structure it best for resale purposes
@Chris Seveney thanks for the feedback. I'm thinking the same thing. I would be interested in learning more from you so I sent a DM your way. Hopefully we can connect soon!