Real Estate Note Advice Wanted

[Alisha Lee]

Hi-

I'm a newbie in note investing...but have a situation that I'm trying to resolve with 3 of my real estate properties.

Here it is: I bought 3 residential properties in NY 5 years ago and the seller carried the note. Now, the five years is up and I'm looking for a way to pay off the original seller as I want to keep these properties. I have 9 other mortgages so banks don't want to do a refinance even though I have good credit. I want to continue to own these properties but am looking for an investor who wants to get note payments over the next 5-7 years. Any suggestions on where I should look for someone to carry the note and pay off the original seller in full?

All suggestions would be greatly appreciated!
Thanks!

[Loc R.]

Alisha,

It sounds like your seller didn't know about the consequences of creating paper with a balloon. Her options, at this point, from easiest to most difficult would be:

1. Modify the loan directly with you. Maybe something along the lines of 10% in principal in exchange for a 1-year balloon extension. That would give you 12 months to find a lender to refi.

2. Sell the note to a paper investor who would extend the amortization.

3. Foreclose.

Sounds like Choice #3 isn't an option, so try discussing 1 and/or 2.