Sellers providing owner financing might elect to use a Real Estate Contract, Contract for Deed, or Land Contract to document the transaction rather than a Note and Mortgage or Note and Deed of Trust. There are both advantages and disadvantages to carefully consider when choosing a Contract. The big difference with a Real Estate Contract is that the buyer will not receive the … [Read more...] about What is a Real Estate Contract?
Note Buying Blog and Articles
Understanding Note Endorsements
Does the seller have to worry whether an investor can demand payment once they sell their owner-financed note? The answer depends on how the note was endorsed along with the terms of the Purchase Agreement. … [Read more...] about Understanding Note Endorsements
Structuring Notes for Top Dollar Pricing
The terms of owner financing dramatically impact the price an investor is willing to pay should the seller ever decide to sell their note, mortgage, trust deed or contract. Use these optimum terms to structure a seller financed transaction for top dollar pricing. … [Read more...] about Structuring Notes for Top Dollar Pricing
Wraparounds with Underlying Liens
When people go to sell their home, the majority will still owe money on a loan from when they bought the property. Since few sellers own a property free and clear, what to do with this underlying lien is an important consideration with owner financing. … [Read more...] about Wraparounds with Underlying Liens
Real Deal #148 – Seller Financing for IRA Investments!
Welcome to Real Deals! It’s always easier to learn from real life so here we share information from actual owner financed transactions. It can be challenging to obtain non-recourse loans necessary to finance the purchase of real estate in an IRA, 401(k), or other type of self-directed retirement account. Seller financing can be a viable alternative financing solution. … [Read more...] about Real Deal #148 – Seller Financing for IRA Investments!
Real Deal #147 – Estate Note in Arizona
Welcome to Real Deals! It’s always easier to learn from real life so here we share information from actual owner financed transactions. A seller-financed note is an asset. The seller can elect to hold the asset collecting payments, sell the note, or leave to heirs as part of their estate. Many heirs would prefer cash now rather than payments over time. A large number of notes … [Read more...] about Real Deal #147 – Estate Note in Arizona
What is a Payer Estoppel?
Prior to purchasing a seller financed note, the investor might ask for a payer estoppel. This simple one page letter or document is sent to the person making payments on the note, mortgage, deed of trust, or real estate contract. The estoppel explains the investor is contemplating the purchase of the note, reassuring the payer that all terms and conditions will remain the … [Read more...] about What is a Payer Estoppel?
Temporary Seller Financing
Who wants to wait for the monthly note payments to trickle in over the next 5, 15, or 30 years? It makes sense that more sellers would be willing to carry back owner financing for the buyer if they knew how to sell all or part of their note for cash shortly after closing. … [Read more...] about Temporary Seller Financing
What’s Your Discount?
How do you answer a note seller when they ask, “How much will you pay for my note?” The simplest answer to “What’s Your Discount?” would be “It depends!” But what you say next is very important. Here’s how we like to answer the seller’s first pricing question. “How much we pay really depends on your note. Each transaction is unique so we look to 5 key factors for … [Read more...] about What’s Your Discount?
Real Deal #146 – Delinquent Taxes in Texas
Welcome to Real Deals! It’s always easier to learn from real life so here we share information from actual owner financed transactions. This Texas note deal found a seller scurrying to pay three years of back taxes that their buyer failed to keep current. Selling the note to an investor saved the buyer and seller from losing both the property and the note to a … [Read more...] about Real Deal #146 – Delinquent Taxes in Texas