This Seems Too Easy!

[Joshua Pagan]

I have been thinking about a few strategies and I was really looking to see what everyone thought about this! If this in any way is breaking any laws or seems unethical PLEASE feel free to let me know! I am always open to hear everyone's thoughts and opinions!

Here is the hypothetical scenario: 

20% Down payment on a 100k house -- 20k

3 months holding rent/ins/fees/etc ------ 3k

Misc. --------------------------------------- 5k

TOTAL EXPENSES/3 MONTHS --------- 28k

If I find someone who is willing to finance a buy from me, using a seller financing strategy, can I sell that note to the bank at 50%? That would be a 22k profit for simply pushing papers around for a few months....

It just seems too easy...

Is there something wrong with this strategy or something I may be leaving out?

Again, looking for any feed back and it is all very appreciated!

Thanks!

[Brent Coombs]

@Joshua Pagan, the main two sentences that makes sense to me at the moment are where @Joe Villeneuve wrote: "If you have a $20k DP, on a $100k property, you also have a $80k mortgage on that same property. You can't sell paper backed by collateral you don't have". 

I would add: isn't it the BANK that already owns your $80k note - not you? What you haven't mentioned is: how much would you be "selling" the PROPERTY for (on top of the $80k you already owe on it)? ie. What would YOUR equity/note be worth?

I'm not quite grasping where your $22k profit would coming from, and why you think it would be "the bank" that would be giving you that profit. Can you please lay it out in simple terms, starting with how you think you will find a person willing to "seller finance" it FROM you?

To me, It just DOESN'T seem too easy...