Comments on: How to Find Cash Flow Notes Nobody Else Will Ever Get a Hold of

By: Paul

Paul — Wed, 26 May 2010 23:50:48 +0000

I just noticed the answer to my question in comment #8 above. Thanks!

By: Paul

Paul — Wed, 26 May 2010 23:43:55 +0000

I’m very interested in how a seller can hold a note to make their house easier to sell, but how would the 1st mortgage get satisfied? I would assume that the new note would be for the seller’s equity only. Please explain

By: Gwen Ontiveros

Gwen Ontiveros — Wed, 26 May 2010 19:01:47 +0000

I am interested in any information that will add to my knowledge of acquiring leads from potential note sellers and avoiding the caveats of non-seasoned notes.

By: Bob

Bob — Tue, 25 May 2010 07:51:49 +0000

Well, I have many questions but, who actually pays the down payment and how is the down payment created?

By: Susan Smits

Susan Smits — Wed, 12 May 2010 16:21:37 +0000

Did you get a response to this question? I had not even thought of this and I am very interested in the response to this question, it would help to know.

By: Bobby Lewis

Bobby Lewis — Mon, 12 Apr 2010 02:10:18 +0000

How does this work with foreclosures? And as far as owner financing is concerned, we let the owner know that creating a note will help sell their house? Right? Amd then the same rules apply like in the first book that shows how a cash flow note is created? Right?

By: Hope J

Hope J — Wed, 07 Apr 2010 17:16:58 +0000

Very informative! Quite an innovative approach…I like it and will definitely give it a try! However, I have a few questions:
1)can a seller provide seller financing if he/she doesn’t own the property free and clear; if so how does that work? 2)Where do we find the unqualified buyers who can only use seller financing?
Thanks.

By: Alton Brewer

Alton Brewer — Tue, 06 Apr 2010 15:20:07 +0000

Simply put,both very informative and motivational.

By: Andrew Distad

Andrew Distad — Sat, 03 Apr 2010 04:11:46 +0000

Hey Eric,

The Max LTV depends on the investor’s appetite and the market in which the home exists. It’s usually 90% tops but you never know, if you hunt hard enough you might find 95%. But it’d be pretty rare. But it depends on the other factors such as seasoning and credit. I might buy a 95% ltv note if there was 12 months conclusive pay history and 700+ credit. but it all depends. If it were in texas- sure! Detroit- No way!

It’s all subject to other variables. You just need to do the biz enough to get a feel for the market.

Regards,
Andrew Distad
Investor

By: Andrew Distad

Andrew Distad — Sat, 03 Apr 2010 04:06:04 +0000

Hey Greg,

I’m not sure if anyone answered this yet, but that’s a great question- The property seller can create what is called an “all inclusive trust deed” or what is slang termed a “wrap”. It is like a circle within a circle. the interest rate should be the same or higher than the smaller existing mortgage. And to prevent violation of the due on sale clause, the property seller should deed the property to a family trust so instead of Greg seller the property, it would be the Carcaci family trust selling the property and this makes it much harder for the bank to say they violated the due on sale clause. Besides, the banks have bigger fish to fry, why would they call a loan due if they payments were always on time? If it isn’t broken don’t fix it, right?

That’s a common misunderstanding that I only explain if it is mentioned because it complicates the home seller education process and I just get to that when it arises.

In order for me to buy a wrap there usually needs to be a difference of 20k or more between the A.I.T.D. and the underlying mortgage.

Regards,
Andrew Distad
Investor.