Collateralizing Owner finance notes

[Brad Crawford]

Any recommendations of lenders that will use a note as collateral on a line of credit? In other words I have a few Owner finance notes that I’m looking to leverage for cash. Thanks!

[Account Closed]

@Brad Crawford Unfortunately don't have anything too helpful, but 2 things I've seen are

1) I recently met with a rehabber in San Antonio who owner finances homes. He has a long-standing relationship with a local bank who finances most of their flips, so because the bank knew a lot about the properties already, and they have a long relationship, they were willing to finance the notes

2) I've seen several note funds on BP who have investors, but instead of a typical profit split arrangement, the fund just promises the investor a fixed return (8-12%) and a senior, unsecured claim against the fund's assets (i.e., the investors are the lenders). Wonder if you could do the same if your notes are in an LLC, and the LLC doesn't have any other debt. Something to think about if you don't get anywhere with the banks..