All Forum Posts by: Russ Trimboli

Thanks for the input thoran.

Yes I agree I need to find the exit strategy note buyer and reverse engineer the process.

I’ve been putting out feelers but the tricky part of the process is not crossing any lines regarding security and exchange oversight.

Which is why I reached out to the braintrust that is bigger pockets for ideas.

Everyone has been helpful

I’m sure once I complete the first transaction everything will begin to click together and I’ll be able to fine tune the process

thanks chad. i will do that. im hesitant to create that first note until im pretty sure theres a buyer that will purchase .

its a chicken and egg thing.

im setting up an appt with a real estate atty this week and see if i cant move this forward.

i have a house that just went sold pending this last week and its an fha loan

i have realtors to pay and the buyers asked for 6% closing costs

im ready for a new plan

i appreciate your input on this as im in the brainstorming phase of this.

the way i was going to approach this is to coordinate with a potential note buyer what they would need in the way of risk mitigation upfront to make the note more attractive.

a rmlo  would originate the loan.

the servicer would be poised and ready.

the down payment would be 5-10%

the first lien loan would be 70-75% of loan value

id be selling the first 120 payments not the note itself

the interest rate would be 8-9%

would that still be such a deep discount ?

well mostly im looking to seller finance to begin to create longer term profits.

selling the partial will recoup the money used to purchase and rehab so i can repeat the process

keeping the back end of the first lien note essentially pays me a second time as well as keeping the down payment money and the second lien for the difference between down payment and 100%

if i build up a list of buyers who are decent risks but unable to qualify for bank loans i will limit the amt of times i have to conventionally sell property via a bank and a realtor which ,combined, would take 10% of my profit

it seems a much more workable way to bypass the need for hard or private money upfront to rehab, having to work with draws , etc, points. or lease purchasing it and having to refinance to pull my money out

the fact that i have cash to purchase initially would allow me to get ahead of these costs

does this seem feasible ? where are the holes in the boat ?

im trying to develop a system where i am buying a property with cash, rehabbing, and then creating a first lien note at 70-75% and then having an investor poised to purchase a partial at closing

what can i do to find a person or company willing to purchase at closing ? id be willing to qualify the purchaser according to investors guidelines to make them more comfortable purchasing

Thanks I appreciate it

I’ll outline what I’m trying to do and maybe you know how I should go about making it happen 

I have 3 houses ready t o sell

2 are on the market one soon

I’d like to sell them with seller financing but by creating a first lien note for 70% Ltv and sell that to an investor looking for long term cash flow at closing

Either 7 or 8% 30 yr amortized with a 10 year balloon

I would create a second mortgage to keep as my profit for whatever balance is needed after down payment

Or occasionally sell the second at a discount at closing as well

That will effectively cash me out of my money in the deal and create cash flow so I can do it over and over

Your thoughts ?

is it 90% of purchase price plus rehab amt ? so im only providing 10% down ?

any upfront points ?

can i do this through my solo401k ?

im looking for a referral for a real estate atty/ title company that is fluent in creative finance, specifically creating notes and also need a rmlo ( they can probably be from anywhere but if i found someone local it would be nice

im in the cincinnati area

wow ! its gonna take me a few read throughs to grasp all of that but it sounds plausible. she doesnt want to take her friend to court so let me do it. ill ask a few questions regarding the equity we are talking about to see if it is worthwhile and then discuss this. maybe once her friend relizes what might happen she might just decide to deal. thank you 

you may be right but theres so much i dont know i thought i might get some new perspectives on here. one of those perspectives might be know when to walk away

thank you theresa