Owner Financing – Avoid 5 Balloon Mortgage Pitfalls

Using a balloon payment with owner financing can be a valuable addition to a mortgage note or land contract. Unfortunately many sellers and buyers unknowingly combine a balloon payment with high risk factors turning a positive into a negative. Be sure to avoid these common pitfalls when considering seller financing with balloon mortgages. … [Read more...]

Lease Option or Seller Finance?

When a real estate market turns soft the property marketing ads become peppered with offers to lease option and owner finance. Most property owners understand the seller’s market has quickly turned to a buyer’s market requiring them to think creatively and consider concessions. … [Read more...]

Need to Move a Property? Consider Owner Financing!

When a property isn’t selling most real estate agents are quick to suggest a reduction to the sales price.  It is common to see the tag line “Price Reduced” added to for sale signs, listings and ads. Rather than reducing price it pays to consider offering owner financing to sell a property quickly. … [Read more...]

Should I Owner Finance a Second Mortgage?

More and more sellers are being asked to carry back a second mortgage for the buyer – especially with the banks still keeping a pretty tight reign on lending. While seller financing can be a viable alternative to bank loans when it is the buyer’s primary obligation or first lien, a second lien has considerably more risk. … [Read more...]

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...]

Recipe for Success!

The stock market continues to retreat. Personal portfolios are dwindling. It is a “buyers market” in real estate. Banks, despite an unprecedented federal bailout, are tightening their lending programs so the average purchaser can’t obtain a loan. This is the recipe the private mortgage industry was founded on – and it has returned. … [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...]

Safekeeping the Original Promissory Note

The Promissory Note is an important legal document that 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...]

What’s the Big Deal with Note Rates?

The interest rate a seller agrees to accept when providing owner financing to the buyer has a large impact on the note’s value.  Unfortunately, many sellers overlook this important decision.  Here’s why the interest rate on a note is such a big deal. … [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...]