Leveraging Owner-Financing

[Phillip Richardson]

I am in the process of selling three condo units, and I will be holding the mortgages. I was hoping to gain some advice and insight on strategies to leverage the mortgages into growing my portfolio. 

[Julian Buick]

@Phillip Richardson the condos are the collateral. Once you sell the condos you no longer have collateral, you have promissory notes. To make a loan from a bank you have to be able to back it with collateral. You can't back a loan (a new note) with another note. If you default on the new loan what would the bank take back from you? The original note? They want to be able to take back a hard asset. Much like if the people you sell the condos to stop paying you can take the condos back.