Unsecured Note--Need Ideas

[Austin Hughes]

I'm selling a property with owner financing with another investor in town. He has lowered the amount that he will finance to where I'm barely profiting up front above my purchase price. However, this leaves me with $30,000 (difference between sales price & what he will fund) that I can collect on from my buyers. 

However, I can't put a secondary lien on this property. And, as I've mentioned in another post, I don't particularly want long term payments at this point in my career. I'd much prefer him funding the entire amount, but this is the situation we are in. Also, I face the issue of getting a proper promissory note or other way to secure my note receivable. I'm confident the buyers will pay it out, but I'd like to cash out before 30 years or whatever term it is.

Anyone have experience in situations like these? Can you think of a way I can get this note going that will enable me to sell it to a note buyer at some point? How else could I get the entire $30K earlier? How could I ensure they'd pay it back, or have some way of recovery? Thanks.

[Charlie Fitzgerald]

Hi @Austin Hughes I can only advise you in the way I would or would not go this deal.  #1, without a security interest in the property, you are an unsecured creditor and ALL other secured creditors take precedence over your debt position in the event if a default.  No serious note buyer is ever going to consider purchasing an unsecured note.  There is ZERO way that I would ever do this deal the way you are considering doing it.  How do you get more if your money up front?  Don't sell to anyone that can't give it to you.  Thus deal stinks for you and benefits everyone but you.  Your risk is far greater than any benefit you might see.  Bottom line...don't do this in any manner that has you unsecured.