How to collaterize a note?

[Account Closed]

I have a number of houses that I sold owner finance. After reading a little about selling partials it appears that the buyer of the partial is in the drivers seat so to speak and if they don’t know how to properly handle collections they could destroy the back end profit. I had a note investors send me mailings pretty often wanting to broker my notes for a fast buck. I went so far as having one guy agree to buy a note from me. He then emailed me a one sided contract without a real cut off date. Basically I was the only one on the hook, so I pasted after I pointed this out the note guy.

 Is there a way to collaterize a note or two in order to get working funds, but I would still be in charge of making sure my owner finance buyers paid? 

[Mike Hartzog]

You can use hypothication to borrow against the note as collateral.  With this approach you retain ownership and control of servicing.  You can borrow at the same or different rate as the loan itself.  Typically this is done with private investors rather than banks.