Selling Real Estate Notes

[Joel Cummings]

Hello All, Not sure if this idea has been broached in this particular way, but I know the idea is not new. Has anyone ever sold a flip using owner financing, taken a large down payment (25-30%), financed the balance and then sold the note to get a full cash payout? Example:

Purchase price of 525k

25% Down payment 131,250

Note balance 393k

Sell note at 85% value - 334,050

Total cash received: 465300

I know there would need to be some seasoning in there for the sale of the note, and the buyer's credit profile would need to be really good for an 85% payout. Any other issues experienced note buyers would look for?

Is this viable or worth the trouble to consider?