This is my first Forum, I've been investing in real estate full time for over a year now. One of the strategies I was using was to buy ugly properties, fix them up, refinance and pull my original investment plus cash back out at close. Properties are only leveraged at 65-70% LTV. This worked for a while, but with all that's going on in the mortgage industry it's really difficult to qualify anymore. Especially after you have mortgages on several Properties. I've also tried to get financing on them through my LLC, but the banks are pretty stingy right now and I havn't found any that will lend to a LLC owned property.
The other day I heard of a the strategy of creating and selling notes on your properties with private lenders. If I understand it correctly you basically create a promissary note, with the property as security for the note. Then Secure your private lender with a lien against the property. It sounds almost like the buying with a private lender in the first place.
Is there anyone out the that has experience with this technique? I havn't tried it yet , but I'm looking to use this strategy on 3 properties I own outright and don't want to mess up. It sounds like a pretty good strategy to use if your planning on holding properties or have some free and clears that you want to pull money out of. Any help would be appreciated.