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How do I use a note as collateral?!
I've been reading a few note guides, and came across the concept of using your note as collateral for another loan. This way instead of selling, paying taxes, you can borrow against it and invest again.
Anyone have any idea how to do this?
I have a note with UPB at 91k and 10 percent interest rate and I'd love to get a personal loan for around 25-35k. I can sell the note for 74k but would be hit with a tax cost of around 40 percent. And I don't need all 74k right now. I'm also not too keen on a partial note as I feel my position in the repayment if a default occurred would risk me losing it all, since all lawyer fees etc get paid first!
Anyone able to help me get creative and squeeze out some money from this note without selling it all or partial?