Selling notes on rental property income stream

7 Replies

Hello,

I was wondering if anyone has thought about selling a partial on a rental property income stream vs a standard seller-finance purchase contract?

I can't think of any reason why you couldn't; the investor could still take a 1st lien position on the home (btw I'm talking about a free and clear home).

Would any traditional note buyers be interested in something like this?

Thanks for the replies.

Yes, I guess it would be a loan, secured by the home and the projected cash flow.  

Do you think there would be interest in that?

By selling a partial on an actual note, you are recouping your initial capital outlay to develop the project (owner financed house you flipped on terms to end buyer).

In my example, I'm not selling the house, but holding it as a rental.  But I still need some cash to replenish the bank account so I can develop another rental property.  Hence, the desire to sell some of the income stream from rent payments. 

You are confusing “rental income stream” with a Note “income stream”. You can sell a partial on a Note but not on “future rents”. You’re looking for a straight Loan, you’re not “selling” anything.