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TC, my loans are a fixed 11.25% with no balloon pmts or early payoff penalties.

Where can I find a steady source of note buyers who will pay 75% - 85%??

I will consider taking back a 2nd note for part of the down payment for 10 months.

As for FV, do you mean I should mark up the sales price to reflect what the property will be worth in 15 yrs?

Usually, I don't rehab or anything. I buy "livable" properties and clean them.

Yes, I am in an area where I can pick up that many deals and I have been for over a year. I've been doing on commission for a large investment firm.

That fact that I will pay 12% ROI is because it is the agreement I will set up with an outside investor. Do you think they would invest for less?

I handle the contract and title work myself.

I do anticiapate getting some back. How much should I expect a trustee's sale or turnover to be? What is a trustee's sale? By turnover do you mean to repossesing and reselling? What if I just foreclosed or had the sellers sign it back to me?

I will borrow from an outside/private investor and I will hold first mortgage on the properties. I will guarantee a 12% ROI. (should this be stock or a note?)

My wife and I would like to open an office. She has a license and I will be her assistant.

I anticipate, as her assistant, to be able to inform customers of property details, record contact info, gather info about prospective listings, follow up with customers regarding bid placement acceptance or decline, place signs in yards.

She will show houses, sign contracts.

Also, would we be allowed to open our own office away from the agency that she works for? ie...She works for C21 but uses her own office with a C21 sign on it.

I'm looking to start up a new seller financing business. Please look at the figures below and see if this plan looks like a good deal.

I borrow $32,500 @ 12% for 15 yrs. and purchase a house.

I seller finance the house for $50,000 @11.25% for 15 yrs with $5,000 down.

After I recieve one year of timely payments from the purchaser I sell the note for 75%.

I will average 3 houses per month for a total of 36 per year.
I will have a positive monthly cash flow of $128.51 per house or $25,444.98 per year.

I will collect $180,000 in down payments for the year.

I will collect $1158.66 when I sell the notes.

For a total of $206,603.64

[i]How much should I anticipate paying in Capital Gains taxes?

Are there any tax breaks for investing in low-income single family dwellings?

I also anticipate having to foreclose on 1 out of 5 homes sold.

YOUR INPUT IS GREATLY APPRECITATED! :pup: [/i]

And where can I find these buyers? Would they be a consistent source?

Seller Financing
Single family dwelling
Sold for $50,000
$5,000 down pmt
15 yrs
11.25% fixed
no balloons or prepay penalties
seasoned for 1 year with good payment history
credit score of 560
$518.56/mo
Balance of $43,778.11

:groovy:

Thank you! That was extremely helpful and now I'll dive right in! :superman: