The difference is they have other properties they can put up for collateral, reserves they can show, etc.If I give you as a seller a nice performing property and you have no experience the odds of success are very low and I can kiss that 15% note goodbye.

So, I'm trying to interpret his perspective - is he right that I would do better to sit on my hands and do very little investing in the next 400-500 days, or give it away, or am I correct that if I can find the right buyer, I could get some down and a good note, perhaps collateralized, and the risk would simply be that he burns my trees on the way out if I have to foreclose.

Additionally, the buyer may have something else he could use as collateral.

Bill Gulley, what are you saying, that first note you purchased was written on animal hide parchment and collateralize by a cave just east a tyrannosaurus rex playground?

I am pretty sure that lenders can pursue deficiency balances via deficiency judgement in Nevada, but I could be wrong.So your only risk is the lender foreclosing on the collateral property, and then pursuing you for any deficiency balance once liquidated.

Funds are paid, representations and agreements are signed and the note is assigned with an endorsement and filed.Usually a buyer will ask for a package of documents, I'd want to see;Copy of the note and deed of trust, Commercial deal, a copy of the settlement for the transactionA list of inventory collateralized and copies of the UCC filingsA copy of the first lien as filed with terms and payment requiredPayment history of the note, with verification of receipt/depositsCopies of any loan modifications or extensionsAppraisal on the property at sale on RE and equipment if anyA letter simply desiring the intent to sell with a description of the note with the book and page county as filed.

(other than putting up everything you have as collateral?)

If you still want to lend the money on this deal, I would go in strictly as a lender and not a "co-investor", and I'd get additional collateral because any mistakes by the guy who is actually doing to the work could cost this deal all of it's projected profit in a heartbeat.

I should have posted the second part of my plan to get the money to fix up the property to a acceptable level for rental.I was planning on taking a personal loan out using the property as collateral, therefore providing the money required to fix up the place.

Two in my area to date, one Realtor seller financing without a license but don't know what the damage is, it's probably not over.The other was a mortgage broker in using the seller financed notes as collateral to pool funds, unregistered security, originations not in compliance, investor fraud, mortgage fraud, mail fraud, you name it, he's by now in the state motel.