I'm looking to purchase a house with a note and then, at closing, have the note sold to a predetermined third party so that the seller would get cash for the deal. I would then immediately flip the property and pay off the note.
PROS:
- The note is an 80% loan-to-value
- there is a 10% interest rate on the note
- I have excellent credit
- a sum of cash would be offered to the new owner of the note as an
incentive
- an early payoff penalty would be in place on the note
CONS:
- there is no payment history since the note creation and trade will take
place almost simultaneously
- there was no down payment paid to the seller of the house
Are there any firms that would accept a note like this? It seems to be a pretty secure one, but I suppose it would be unorthodox.
