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I read of another member talking about using this strategy but there are a few little details that are extremely important.
There is a foreclosure for sale for 35k. It is valued around 150k. I figure it will need some work so lets figure 60k by the time it is all said and done. Estimated rent is around 1300. Lets say that I owner finance the property for 100-120k and charge a favorable rate of 8%. This is still below comps in the area and below the estimated value etc. Then I want to sell the mortgage in order to cash out.
Questions: Is this a realistic strategy. Once I aquire the mortgage who would I sell it too. There are places that advertise the purchase of realestate paper but how do they assign value/ decide whether or not to purchase. Is there a way to sell it to the market/ is there a market to sell it too. Is the sale of the paper dictated on the quality of the borrower which makes sense but how will this be verified. I figure that it could be sold relatively easily since it would have a higher then market interest rate making it attractive to investors etc. but how would I package it for sale to these organizations/people.
The person who wrote about this strategy said that he can sell the paper much easier then a house. In theory this strategy sounds fantastic as a way to move property in this rough market. Thanks for all the help and if there is a book that will explain this strategy further please give me the recommendation.
There is a foreclosure for sale for 35k. It is valued around 150k. I figure it will need some work so lets figure 60k by the time it is all said and done. Estimated rent is around 1300. Lets say that I owner finance the property for 100-120k and charge a favorable rate of 8%. This is still below comps in the area and below the estimated value etc. Then I want to sell the mortgage in order to cash out.
Questions: Is this a realistic strategy. Once I aquire the mortgage who would I sell it too. There are places that advertise the purchase of realestate paper but how do they assign value/ decide whether or not to purchase. Is there a way to sell it to the market/ is there a market to sell it too. Is the sale of the paper dictated on the quality of the borrower which makes sense but how will this be verified. I figure that it could be sold relatively easily since it would have a higher then market interest rate making it attractive to investors etc. but how would I package it for sale to these organizations/people.
The person who wrote about this strategy said that he can sell the paper much easier then a house. In theory this strategy sounds fantastic as a way to move property in this rough market. Thanks for all the help and if there is a book that will explain this strategy further please give me the recommendation.
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