Is this a thing?

[John Roeder]

Hello guys and gals, On my long commutes my mind wanders as I listen to BP podcasts and I stumbled upon and idea. However I have no idea if it's a thing or even possible. The idea below: I purchase a house all cash for 100k Sell the home via seller financing Let the loan season for about a year or two Then sell it on the secondary market. Now it's my under standing that note investors like to purchase these at a discount. And with the total loan payoff amount for a 100k loan over 30 years at 6% is $215000. Well if I sell the note in a few years for 75% of its payoff value, I would sell it for $161000. Therefore profiting $61000. Is this a thing? Or is this possible. Are there key points I'm missing? Seems like a great deal and win win for all parties. Someone gets into a house they may not have been able to qualify for otherwise. Someone makes money on the sale of the note. And an investor gets a cash flowing note at 25% discount.

[Chris Seveney]

John Roeder - if the note is 100k current value a note buyer does not pay a discount off of the total interest paid- they pay a discount off of the in unpaid principal balance (100k minus principle paid by buyer)

For example if you owner finance a $100k loan and tried to sell it for $150k - what if the person refinanced the day after you sold. The balance on the loan is $100k so person would lose $50k.