NEED A PARTIAL CASH OUT ON A NEWLY CREATED SELLER FINANCE NOTE?
HERE IS AN EXAMPLE OF WHAT WE ARE TALKING ABOUT….
SELLER SOLD HIS HOUSE FOR $110,000 WITH $10,000 DOWN AND CARRIED THE NOTE OF $100,000 @ 10% PAYABLE @ $1000/MO UNTIL PAID IN FULL.
WE AT THE BRIDGE FINANCING WILL LEND THE NOTE HOLDER $30,000
FOR ALLOWING BRIDGE FINANCING(THE LENDER) TO COLLECT $1000/MO FOR THE NEXT 5 YEARS.
AFTER THE BORROWER(BUYER) PAYS BACK THE THE 60 PAYMENTS, THEN
LENDER WILL SURRENDER THE ORIGINAL NOTE & DEED OF TRUST BACK TO THE SELLER TO CONTINUE TO COLLECT REST OF THE PAYMENTS DUE TO THE SELLER FROM THE BUYER.
IN THE EVENT THERE IS A DEFAULT ON THE PART OF THE BORROWER DURING THE 5 YEAR PAYMENT WINDOW, THE LENDER CAN FORECLOSE TO OBTAIN THE REST OF THE MONIES OWED AND THE REMAINDER GOES BACK TO THE ORIGINAL SELLER.
