At closing with the seller, the note would be created with a
compounding intrest rate very muck the same as a conventional
mortgage. the 10% down would go to the note investor to show a
comitment to the note also very much like a conventional mortgage. The
payment would be based on the remaining $36k.

Rich Carreiro <rlcarr[at]animato.arlington.ma.us> wrote in message news:<u8ypv81hv.fsf[at]animato.arlington.ma.us> ...
- quote -

northeast[at]stny.rr.com (John Keegan) writes:

- quote -

Your wording is ambiguous. Are you talking about a $40,000 note with
a 10% coupon (i.e. pays $4,000 in interest per year) which is then
sold for $36,000 (so the investor gets $4,000 per year in interest,
plus a gain of $4,000 on the note)? Or are you talking about the
investor giving you $36,000 today and you giving him $40,000 in
fifteen years but no annual interest payments, so that all the
invester gets is the $4,000 gain on the note?

If you're talking about the latter, that works out to a return of
0.704% per year, so obviously no sane person would touch it.

--
Rich Carreiro rlcarr[at]animato.arlington.ma.us

I am new to investing in real estate but have read many programs.

I need help with this!

I looked at a 4 unit property that I would like to invest in ie.. Live
in 1 unit and rent the other 3.

I have exusted the conventional avenue of getting a mortgage because
my dept ratio dosn't work well.

I enlisted a co-borrower wich makes our dept ratio work, however my
credit is "fair" and my co-borrower credit is"poor".

I see this property as an avenue to get me investing in real estate
and the numbers make sence with rent and all.

So here is the question:

The property is selling for $38,500
I would like to offer $35,000 cash at closing.
I need an investor to flipp a note at closing $40,000 heavily
discounted

$40,000
$4,000 down
10% interset
15 yrs.

My offer to the seller would be to create a note for $0 down land
contract at $40,000 with a 10% interest rate for 15 yrs.

Flip the note at close giving the seller $35,000 cash.

Note investor would buy the note at $36,000 after my $4,000 down
payment to the note investor.

Would a $40,000 note discounted to $36,000 be attractive to an
investor? Making 10% for 15 yrs.? Keeping in mind that there is a
co-signer on the note!

Am I going in the right direction?

These are my thought on how to structure the deal. Any input would be
greatly appreciated.

Anyone investors interested please feel free to contact me as I need
help in structuring the deal correcly and get an offer on the property
quickly!

Thanks in Advance!

John Keegan
northeast[at]stny.rr.com