How to create a Note on Rental owned "free & clear"...?

[Bryan C.]

For my experienced note investors, can I create a note on my property I own "free & clear"?  

The property is rented right now.  If this is possible, how would I do it?

[Jeff Rabinowitz]

Yes you can. (The property wouldn't even need to be owned clear to do this but it will be harder to find people who will fund in second position.) All you need to do is to find a lender who will give you money for a note secured by the property. If this is a private lender the valuation can be anything both parties agree on. Appraisals make sense to determine value but are not absolutely needed. Everything is negotiable, the LTV, rate, term, amortization schedule, balloon payment, etc. Draw up the note (it is probably best to have an attorney who knows lending laws in your State draw it up). Record a mortgage to protect the lender.