How Much House Can the Buyer Afford?

Many sellers accept owner financing without any idea of how much the buyer can actually afford to pay. The last thing a seller wants is to stress over receiving monthly payments or worse, getting the property back through foreclosure. Use these three simple methods to determine how much the buyer can afford before accepting seller financing.

The amount a buyer can afford to spend on a house depends on their income, overall debt, cash they can put down, credit rating, and the mortgage terms.

There are three different calculations that are traditionally used by mortgage companies to determine how much house a buyer can afford. These are known as Read more

Real Deal #144 – Mixed-Use in Oklahoma

Welcome to Real Deals!  It’s always easier to learn from real life so here we share information from actual owner financed transactions.

The creation of a note does not always follow a straight path.  Often the terms are modified to fit the needs of the transaction.  This note in Oklahoma started out as a sale of business, then included real estate, and was eventually modified to meet the repayment needs of the buyer. Read more

Finding Mortgage Notes with Reverse Ad Marketing

Many cash flow professionals are familiar with placing advertisements offering to purchase notes yet few take advantage of a technique we call Reverse Ad Marketing. This is one of our favorite note marketing methods based on the simplicity, effectiveness, and minimal cost. Essentially, potential clients are paying the marketing cost by placing their own ads offering property for sale. You just need to identify and respond to the ad! Read more

Avoid Three Costly Mistakes!

Would you rather have $97,000 to sell your $100,000 note or only $80,000?  The difference usually comes down to the big three. Here’s the three biggest mistakes note sellers make and how to avoid flushing money down the drain. Read more

Real Deal #143 – New York Church Note

Welcome to Real Deals!  It’s always easier to learn from real life so here we share information from actual owner financed transactions.

Think it’s hard to get a home loan?  Imagine the challenges that come with financing a church!  Here’s how seller financing offered a creative solution to provide meeting space for a New York congregation. Read more

Safekeeping the Original Note

Can you easily locate the original promissory note?  This important legal document should be kept in a safe place, and here is why!

The note is a promise to pay or IOU from the buyer, spelling out the amount and terms of repayment. In legal jargon it is known as a negotiable instrument.  Similar to a check, the original must be presented to collect or prove ownership.

If the seller desires to sell and assign the note payments to an investor, the investor will ask for the original note to be provided at closing. Read more

Increase Value with Payment Histories

Keeping an accurate record of the payments received on the note shows how much the buyer still owes along with their payment habits.  Plus, note sellers can also improve the value of their note by providing a verifiable payment history to the investor! Read more

What is Due Diligence?

Before a note investor will pay cash to a seller for future payments, they perform what is called “due diligence”.  This is really just a fancy word for research.  You can simplify the process by being prepared for these common note investor requirements. Read more

Real Deal #142 – Balloon Note in Florida

Welcome to Real Deals!  It’s always easier to learn from real life so here we share information from actual owner financed transactions. 

It was a nice home in Florida with the seller asking $234,000.  The buyer was eager to purchase the property and had saved almost 10% for a down payment.  There was only one problem. The buyer was unable to obtain a conventional mortgage loan due to some past credit issues, primarily attributed to medical bills.  Seller financing was the solution. Read more

Know Your Market

Marketing is THE KEY to success for any business. Successful note brokers can answer these four important marketing questions. 

1. Who is my target audience? Read more

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