How do I write a note on a property I own outright?

[Patrick Britton]

I own a duplex outright that is worth about $110,000 - $120,000.  I would like to write/sell a note so that I can get money out of the place and get some more investments.  Where do i go and what do i do?  This would be a performing note and pretty much everything about it, included the "price" is negotiable.

thanks! 

[David Dachtera]

@Patrick Britton,

As Jay mentioned, most private note buyers want the note to have come from the purchase of a property.

So, there's a couple routes to explore ...

First, if you own the property in your own name, establish a business entity structure (consult your financial / estate planning expert(s)) and sell the property to an LLC in that structure. The note should be not more than about 70% LTV, I should think, but ask an expert - I'm not one.

... or, go the "traditional" financing route and find a lender who will give you part of the value of the property. You could even consider putting this property up as collateral on the next one you acquire, depending what you can work out with the lender.

My $0.02 ...