Archives for March 2010

How to Calculate Interest Only Owner Finance Payments

Calculating the payment needed to cover just the interest on an owner-financed contract or promissory note is simple. Just follow three easy steps and avoid two common pitfalls. Follow 3 Easy Steps Step 1: Obtain the current principal balance and interest rate from the land contract or promissory note Step 2: Times the balance by the interest rate Step 3: Divide by 12 In fact it is so simple you don’t need the best financial calculator, any standard calculator will … [Read more...]

How Much Will You Pay For My Note?

If you buy or broker notes, you know pricing is the first thing sellers ask when looking to cash-out their payments from a seller carry back. Discover what sellers are really asking and the best way to answer the “What’s Your Discount” question. It’s natural for sellers to want to know the amount of money they will receive to sell future payments on a contract or mortgage. After all, it is the need for cash that made them make the call in the first place. But if you listen closely, you … [Read more...]

What is a Land Contract?

A Land Contract is a type of owner financing that allows the buyer to make payments to the seller for a home or land purchase. The buyer gets to use the property but the seller hangs onto official title until paid in full. The contract comes under several names including Real Estate Contract, Contract for Deed, Installment Sale, and Land Contract. It is an alternative way to document the seller financing arrangement from the more common Note and Mortgage or Note and Deed of Trust. One … [Read more...]