Most Friendly States For Creating CFD & Notes

[Reggie Smith]

Hi I'm looking to use my experience in finding off market properties to purchase and sell with owner financing. I have a buddy who has been buying and selling with owner finance for 10+ years, so I have a pretty good understanding of things but he is a little loose on some things,I don't know if it's in part to the fact that he holds most of the CFD's that he creates, so he doesn't take the buyers thru MLO and usually the down payments are pretty small. If he sells,it's typically a partial and it's to someone in his network,which is just a small group of guys in silicon valley. So for me I'm looking to hold some notes,but there will be times to where I will be looking to sell some notes to buy more properties and create more notes. So my thought process is if I want to sell a note,I need to be buying properties in states that are note friendly. Any suggestions? Thanks!

[Account Closed]

Quote from @Chris Seveney:

@Reggie Smith

Your attorney is correct and please ignore the gurus who say you can circumvent a foreclosure by signing a deed in lieu upfront - you cannot - it will be portrayed as signing under duress and not only will you still have to foreclose but you could also face legal action against you for predatory lending

Also realize you will sell the notes at a discount, typically 10-30% off depending on the interest rate.

@Reggie Smith I agree with  @Chris Seveney. The problem is that by having  the borrower execute a DIL at the time of purchase, you make them THINK it's enforceable. 

Most people don't have the knowledge nor the money to hire an attorney to protect their rights. 

I see bad information all over BIgger Pockets, Facebook groups. SuBto "community" and so on, of supposedly educated "gurus". 

When in doubt, buy an hour of an attorney's time.