Tax liens/ Buying people's mortgages

[BookerTee]

Anyone have experience making money doing either of the above? I'll do some research but would like a first hand account about how this generally works.

 

[fatninja]

when i first got my hands on some major loot i read a couple books on this subject then ran this ad.

I buy paper, all notes secured by real property.

i purchased 15 notes from this ad totalin 87k

paid 28k total. i have about 3k a month coming in on this and ive had most of these notes for 6 years. but i low balled EVERYBODY because interest rates were so high at the time.

basically you buy a first mortgage (hard to find unless its land) and seconds finance by sellers of property. ie you buy a house and the owner says hell hold financing. 6 month later they need cash. you step in tell them on a 20k note that lasts 10 years youll give him 5-6k. you then get the note (ie second mortgage) and start recieving the payments.

hope this helps

 

[BookerTee]

Yeah it does. This is the example I was given buy someone else. They don't do it personally but know how it works. He wrote down:

Purchase Price(for house): $100,000
Bank gives loan of $ 95,000
Former owner gives loan of:$ 5,000

So what happened is the former owner, say Mr. Smith gave the new owner, a personal loan on his own terms.
So:
Face Value of loan is $5,000. Term balance is 5 years, and interest rate of 10%. You would come in and buy loan for $3,000.

So now you have an annual rate of return of 16.7% ($500/$3,000) .

Does this make sense?

 

[fatninja]

your rate of return is too low.

a typical rate of return is closer to 30% at 10% interest i would have offered 1500-2000 nothin over that.

 

[Chase Bannon]

Yeah it does. This is the example I was given buy someone else. They don't do it personally but know how it works. He wrote down:

Purchase Price(for house): $100,000
Bank gives loan of $ 95,000
Former owner gives loan of:$ 5,000

So what happened is the former owner, say Mr. Smith gave the new owner, a personal loan on his own terms.
So:
Face Value of loan is $5,000. Term balance is 5 years, and interest rate of 10%. You would come in and buy loan for $3,000.

So now you have an annual rate of return of 16.7% ($500/$3,000) .

Does this make sense?

This isn't clear to me. Could you pm me and explain more in detail? Thanks.

 

[jesmulen]

can you PM me more info and possibly drop some sites or places where I can get more info ...