Purchasing Existing Notes

[Phil Shearcroft]

Hey Everyone,

I’ve been considering the purchase of a portfolio of notes on existing seller financed rental properties. They all have different timelines and applicable cap rates. Does anyone have experience with these types of investments?

Most of the properties have some sort of equity and since my company will hold the deed to it could I possibly pull that equity out until the term is complete then pay off he loan prior to the renter getting the deed clear title.

Example:

Original Note: $60,000

Note Face Value: $35,000

Rent payment: $1000/month

Term: 4 years remaining

Value of property: $110,000

Insurnace: $550/year

Taxes: $950/year

If I paid fave value for this note can I put another loan on the property?!

If anyone could comment their experience and suggest a good direction to start I would love to hear from you.

Thanks Everyone

Happy Investing!