I purchased a property and had it renovated and now have sold it on contract to some buyers. The buyers credit is not so good so I offered them a contract with a 12% interest rate and they agreed. The sale price is $54,900 and they put $2,000 down. Does anyone have any ideas about how I could sell this contract right now to an investor?

That depends on a lot of factors.

What is the FMV As-Is? How bad is your buyers credit? Is the property appreciating or stable or depreciating? What are the terms of the Contract for Deed? Of most importance is how long.... sure hope you put a balloon payment at 3 or 5 years... if it is for longer than that, you have significantly reduced your population of potentially interested investors.

Your major problem will probably be how you structured the contract. Most CFD, Note/ Mortgage, Assignment Buyers have very specific requirements for instruments they will purchase. You need to know what these are BEFORE you develop the contract/ note or what ever.

It is difficult if not impossible to back up and re-do documents to fit the instrument buyers requirements.

You need to have your exit plan clear before you purchase an investment property... otherwise you could find yourself holding a sack O (mess) that it killing your operating funds with long term holdings that are not marketable.

You can go to America's Note Network and post your note for sale on their free listing service. http://notenetwork.com/Noteservice/ .

I have sold a few notes by doing this. They were hard to sell notes that no-one seemed to want but I found buyers who paid reasonable prices.

Your down payment is on the low side. 10% would be better. If you want to sell your contracts again, remember that the only way an investor can hedge his/her risk is too pay less for your note. Get more down from your buyer and you'll get more for your note.

Ben Innes-Ker
Motivated Seller

Would you prefer they pay off the note? Do you know what avenues they have tried?