All Forum Posts by: Phillip Cailey

I did not say Financing increased or decreased anything. My intent was to communicate that since the buyers can't qualify for traditional financing, there's a possibility they would be willing to pay more for the property, if the seller carried the note.

The universe of qualified buyers/borrowers does not shrink or expand based on financing arrangement. That is a bit absurd.

I was talking about non qualified buyers, so I'm not sure what this statement has to do with anything, I said. If your property can only be available to qualified buyers your correct but if you can offer it to non qualified buyers, financing yourself, " With proper legal advice of course " How does that not increase the number of buyers that can buy your property.

Further, Contract For Deeds/Land Contracts are not held in higher regard than a mortgage or deed of trust, in fact it is the exact opposite. CFD/LC are antiquated instruments and most do not carry the type of remedies that many think they do.

I did not say  that any type of instrument held any more value than the other. Just that there are other options out there that are available. I believe that doing due diligence and looking at all options available is a reasonable and intelligent pursuit in beginning any real estate investing pursuits.

as far as Seller Financing being antiquated instruments, 

I could take the time and show you, that there are billions of dollars in notes, being created every year. There are hedge fund operators, brokers and note investors that make their living creating and investing in notes. It's a simple Google search away. I'm not here to get into a debate, I just felt you were attacking me and the industry that I work in, to feed my family. So I felt a rebuttal was due. This will be the last I will comment on this. 

I'm sure you can take my words and arrange them to come up with arguments to my statements. I'm not the greatest at communicating by using a keyboard. So this will be the last I have to say. I believe Notes are a great way to invest and make a living, I do it and I know many others that do. If its not your thing, fine. I appreciate your opinion. That's one of the great things about this country. I just suggest the OP does his/or her due diligence and not make any decision base just solely on what I or any other person might post in a forum. take all ideas and use the ones right for you.

You can get a higher asking price, doing CFD. I personally would do this over lowering my asking price. CFD expands the number of people who would qualify to buy your property and gives you more options. This gives you the option of taking a partial, then coming back later and selling the rest of the partial, at a later date, thus doing this, in some cases you will make more money, than selling it to someone, who qualifies for traditional financing.

The discount will also be figured on type of property, UPB, location, and parameters based on their own portfolio needs, of the investment firms, at the time of your selling the note.

Parl Thiagasundaram is also correct in pointing out selling just a partial

to get the most money for your note and is something you might want to consider depending on you cash needs.

You need to get at least a 10% down payment to make the note worth more. You can sell the note with only 1 or 2 payments seasoning. You will have to take a bigger discount, doing this. The better the credit rating of the buyer the less discount you will have to take. So try to get a buyer with a 650 credit score or better to help out. There are many people who would be interested in your note. I for one. You can go to my web site for some free articles to learn more. you can find them at caileycapital.com. good luck, feel free to call and I'd be more than happy to answer any questions, I can.

Congratulations Alin.  Glad to hear you taking action and going after your goals.

Sounds like you landed a great deal. I would love to here how you did you due diligence on this property, Did you inspect it personally or have some one do it for you. How did you find out about liens or back taxes that might be owed on the property? are you having a service company handle the note or are you doing it all your self? With that much of a discount, it sounds like you have many exit strategies. I'm very impressed with what your doing. Can't wait to hear how it all goes, thanks for the post, and  a boost of motivation. 

Congrats again.

My name is Phillip Cailey, I am the Accusations manger and Broker for Cailey Capital.

We buy Seller Financed or deed of trust notes for our portfolio. We are currently looking into NPN and other assets that produce cash flow, backed by real estate.

I look forward to learning from everyone and helping where I can. 

Curious, did you sell your note and where and how did the process work for you.