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  • Will You Add? - Purchase Property With The Two-Note Technique

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    ou pledge the property as collateral. Other notes include land contracts, second mortgages, and any legal document obligating someone to rep
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    The two-note technique is another of the many ways to purchase property with no money down. It not only gets you into real estate with zero down, but it can also get the seller a good chunk of cash at closing. This is especially important if he has to pay off an existing mortgage loan on the property.

    First, a definition is in order. What is a "note?" It is the debt instrument created to finance a real estate purchase. The most common example is a mortgage note. A bank loans you the money to buy a house, and you sign a note promising to repay, and you pledge the property as collateral. Other notes include land contracts, second mortgages, and any legal document obligating someone to repa

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    down, but it can also get the seller a good chunk of cash at closing. This is especially important if he has to pay off an existing mortgage loan on the property.

    First, a definition is in order. What is a "note?" It is the debt instrument created to finance a real estate purchase. The most common example is a mortgage note. A bank loans you the money to buy a house, and you sign a note promising to repay, and you pledge the property as collateral. Other notes include land contracts, second mortgages, and any legal document obligating someone to rep

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    loan on the property.

    First, a definition is in order. What is a "note?" It is the debt instrument created to finance a real estate purchase. The most common example is a mortgage note. A bank loans you the money to buy a house, and you sign a note promising to repay, and you pledge the property as collateral. Other notes include land contracts, second mortgages, and any legal document obligating someone to rep

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    rchase. The most common example is a mortgage note. A bank loans you the money to buy a house, and you sign a note promising to repay, and you pledge the property as collateral. Other notes include land contracts, second mortgages, and any legal document obligating someone to rep
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    ou pledge the property as collateral. Other notes include land contracts, second mortgages, and any legal document obligating someone to repay a certain amount of money under specific terms.

    You may be aware that a bank often sells it's mortgage loans to large funds that invest in such notes. Maybe you have had to start making the payments on your own home loan to some other place than the original lender. What you may not have thought of, is that if you someone owes you money on a property, you can sell that debt to an investor. More importantly, if you owe a seller on a real estate purchase, he can sell that note. This is crucial to understanding the two-note technique.

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