Posted by Michael Morrongiello on April 05, 2003 at 12:58:06:
In Reply to: Can I use NOTES to do this??? posted by Eric_D on April 04, 2003 at 18:03:08:
Eric:
This is commonly done as the use of "paper" to get an investor IN to a property or OUT of a property can work several ways....My good friend Peter Fortunato constantly uses the Phrase:
"Use what you WANT (this is the property you wish to acquire), to get what you NEED (to raise the cash you need to acquire the property), to get what you WANT(the property)...."
So, if a seller is willing to sell to you and also finance you and you can demonstrate to this property seller that the "paper" they are being asked to carry back can IMMEDIATLY be sold and converted in a lump sum CASH amount, then often they will agree to such a transaction as even though they are being asked to sell and finance the sale of the property to you they are in essence getting CASH.
We've (Sunvest) been involved in numerous transactions over the years in structuring deals just like this that allow either ourselves or clients to generate cash enabling them to either sell or acquire a property throught he use of "paper"
To your success,
Michael Morrongiello