Tommy Dobczyk shows how to sell owner-financed notes at a discount for quick cash. He structures a $600,000 project with 20% down and a 7% interest-only loan, then sells the note six months later at a 10% discount to pocket $432,000 plus additional cash, walking away with $568,800 total.
Are you in the deal room? After 6 months of seasoning this loan, I want to sell it to a note holder for 10% discount.
I have debt that I'm carrying on another property so that I could hold this free, but I don't— I want to get rid of it because I can build it out and I don't want it.
Again, if you own it free and clear, that's, that's kind of the question is if you own it free and clear and there's no debt on it, then that eliminates any sub-2 opportunity. So I'm just trying to create more opportunities and be And unfortunately, by owning it outright, it just eliminates another opportunity. Well, and again, like, I don't know what your bottom line is, but this is the way I look at it. You had it listed at $525,000, right? So if you had it—
I'm sorry, it was originally $525,000. It's now $425,000.
Your septic's going to run like $30,000. So the owner of the property will put in the septic tank and system for $50,000. Let's add that to the price and then increase the total actual cost to $600,000. We're going to ask for 20% down, and we're going to set up terms for there to be owner financing on this where it's going to be 7% interest only, 5 years with a balloon at the end of 5 years. And then what I want to do is I want— after 6 months of seasoning this loan, I want to sell it to a note holder for 10% discount. So tell me what my cash-out value would be. And so total cash received before selling the note's $100 $436,000. And then you're gonna sell it at a 10% discount, which means that the note buyer's buying it for $432,000. So the cash from the note's $432,000. So then what you've got is the $120,000, the $16,000, and the $432,000. And at the end, you're walking away with $568,800. How much you gonna pay me for that? I'll take it for $425,000 as is right there.
