Owner Financing vs. Seller Financing – What’s In a Name?

As cash flow note brokers we know that owner financing happens when the seller of property accepts payments over time from the buyer. This creative financing helps buyers purchase homes without traditional bank loans. … [Read more...]

Land Contract Buyer Sells Without Owner’s Consent – Real Deal #157

Our readers are the best source of real deals! Here is one seller's request for answers when dealing with a sneaky delinquent buyer that sold without consent. … [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...]

Obtain Pricing on Notes in 3 Easy Steps

What is a fair price for a cash flow note in today's market? Here are 3 easy steps that brokers and sellers can use to receive pricing before they sell a note. … [Read more...]

Where Can I Find Owner Financed Notes?

  It’s great to make money and earn commissions in the note business but first you must find deals!  One tried and true method of finding notes is targeting a list of existing note holders with a direct mail campaign. It sounds simple enough.  Obtain a list of note holders and mail them a letter or postcard offering to provide cash now for the purchase of future payments.  But beware, not all lists are created equal. When looking for a list source you must ask a few very important … [Read more...]

Owner Financing – Why Balloon Payments are Good for Mortgage Notes

A balloon payment is a common addition to an owner-financed note, mortgage, trust deed or land contract. Savvy sellers, real estate professionals, and note brokers know this is by design rather than accident. Here’s why balloon payments can be good for mortgage notes: (Editor's Note: Please be sure to read the updated comments at the end of this article pertaining to changes in market conditions related to balloon payments since this article was initially published.  Also refer to How Dodd … [Read more...]

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...]