Archives for August 2008

The State of the Note Industry

Around the country real estate markets have softened leaving a glut of inventory, decreasing values, and extended marketing times.  The result? More sellers are offering to finance a portion of the purchase price for the buyer in an effort to “Move that House”! While sellers are motivated, lenders on the other hand are hunkering down or running scared.   In the face of the credit crunch and increasing foreclosures, lenders have tightened underwriting requirements.  Fewer loans are being … [Read more...]

Real Deal #139 – Washington State Land Note

Welcome to Real Deals!  It’s always easier to learn from real life so here we share information from actual owner financed transactions. A land developer sold 10 to 20 acre tracts of land in Northern Washington State.  Knowing land can be more difficult to finance … [Read more...]

Verify Taxes and Insurance

Worried the buyer won’t make payments?   Understandably, this is a common concern by sellers using owner financing.  After all, an owner financed note is one of the seller’s most valuable assets.  Unfortunately so many sellers fail to protect their asset when it comes to verifying current property insurance and taxes. … [Read more...]

Outside Closings Protect Sellers!

When an investor has performed their research and is ready to purchase a private mortgage note they will ask the seller to deliver original documents and sign the assignment package.  The investor will want these original documents before the funds are released to the seller. A note seller will understandably wonder “How do I know I will ever receive my money once I turn over the documents establishing ownership?”  So the investor wants the documents before the money is released and the seller … [Read more...]

Moneymaking Opportunities with Notes!

Whether a seller, investor, or note broker, there are many opportunities to make money with owner financed or seller carry back notes.  There is a lucrative secondary market for seller financed notes also known as the paper business. Here are a few of the most common ways people make money in the note business. Maximize Selling Profits A seller often takes back financing for a buyer to appeal to a larger group of buyers and maximize the sale price. A property seller may also elect to take … [Read more...]

What is a Partial Note Purchase?

When a seller allows a buyer to purchase property on installment the terms of repayment are usually spelled out in a Promissory Note or Real Estate Contact. Sellers may also elect to sell and assign their rights to future payments. When an investor purchases all the remaining payments it is considered a full purchase. When an investor purchases just a portion of the remaining payments it is considered a partial purchase. For example, a note has a balance of  $90,000 at 9.0% interest payable … [Read more...]

Note Investor Registry Changes

Bayview First Funding, a subsidiary of Bayview Financial, will no longer be accepting new submissions for seller financed mortgage purchases through its Texas based note buying division, effective Friday August 1, 2008.    Formerly known as Interbay Funding, this company was introduced to the note buying community in 2001.  With competitive pricing and access to securitization funds, Bayview quickly became a preferred national institutional note buyer for full private mortgage … [Read more...]

Real Deal #138 – Partial on Oregon Home

Welcome to Real Deals!  It’s always easier to learn from real life so here we share information from actual owner financed transactions.  A husband and wife decided to sell a rental home to their tenant using seller financing. … [Read more...]