The Seller Financing Solution – Note Investor Radio Interview

Why is seller financing on the rise?

It provides a main street solution to a wall street problem.

If you are wondering how to use real estate notes to achieve your goals in this tough economy then you will want to catch the audio replay of the Note Investor radio interview.

Last Tuesday we tuned in with Lisa Moren Bromma of Wise Women Radio to discuss the opportunities available to buyers, sellers, investors, and note brokers using owner financing.  Here is just a sampling of the hard hitting questions she posed:

• You talk about solving the problems of main street that wall street created. What have you seen through the years in the lending business and how does your company solve these problems?

• What does it take to be a note investor in today’s tough market?

• What is the most difficult part in brokering or buying private mortgages that one must watch out for?

• How do you qualify your investors? How do you qualify the borrower of the note?

• Can investors use their IRAs to buy seller financed notes? How does one go about buying a note for their IRA?

• You have developed a strong following as someone who knows her craft. Tell us about your online presence, what you offer to those who are interested in learning the note business in today’s upside down real estate market.

• How do you keep up-to-date with industry changes and laws like the HUD Safe Act and Dodd-Frank Law?

• Do you have any recommendations on how people can educate themselves?

• You have been so successful where many of our peers have failed. What is your secret?

• Can you give us 3 basic ways to find mortgages?

• You are in business with your husband Fred. Is it difficult to work together? What is the secret to working and maintaining a solid personal relationship/marriage.

• What’s next for you in business and in life?

Many of you already know Lisa Moren Bromma as both a marketing expert and long time note buyer / real estate investor.  She’s also a published author and has recently started an Internet radio talk show entitled Wise Women Radio.  It was fun to be interviewed by Lisa and I encourage you to listen to the free audio replay.

You can also check out the archived talk shows with past interview participants.  It is a great way to pick up ideas at no cost! All it takes is just a small investment of your time! You can listen to the Note Investor interview and others at: http://www.wisewomeninvestor.com/WWR.html

 

 

How to Avoid Going Broke Buying Real Estate Notes

The most important thing you need to know how to do as a note buyer or investor is to properly analyze a promissory note investment when it first comes into your office so that you can either pursue the deal or pass quickly.

Let me show you an overview of my 6 step analysis that I go through on every note we look at. Read more

How Note Buyers Protect Against Rising Interest Rates

I am sure you have heard that rising interest rates have a negative effect on real estate notes and I wanted to take a closer look at why. It is important to understand how rising interest rates affect your current notes and future note investments. Read more

Real Estate Note Investing: “Wow, That Sounds Risky!”

That is the reaction I generally get when I tell people what we do. Or sometimes they will respond with “Oh, that’s got to be tough right now.”

Perhaps it is my answer, but mostly it is because many people’s perception has been clouded with everything they hear and read on the news about mortgages and foreclosures over the past few years. Read more

Investing in Real Estate Notes: Transitioning from Note Broker to Note Investor

Have you ever thought of buying and holding a real estate note for yourself instead of brokering it to an end investor?

I strongly encourage you to do so as it can be a rewarding path in the note business. I initially began brokering notes in 2005 and in 2007/2008 made the transition from note broker to note investor.

Here are some thoughts to keep in mind if you are looking to begin investing in notes to hold for yourself. Read more

Cash Flow Notes and 500,000 Motorcycles?

What does the world’s largest motorcycle rally have to do with cash flow notes?

Absolutely nothing!

Sometimes even note buyers need some R and R. So after riding 1300 miles (no trailers allowed) this week’s edition of Note Investor is coming to you from Sturgis, South Dakota. Read more

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 suffice.

Here are the steps in action:

Step 1: A seller-financed note has a balance of 100,000 at 8% interest

Step 2: $100,000 x 8% (or .08) = $8,000 (interest for the year)

Step 3: $8,000 divided by 12 = $666.67 (monthly interest only payment)

What It All Means

If the buyer pays just the interest every month then the balance stays the same and does not decrease.

If the buyer makes a payment that is more than the interest only portion then there is a principal reduction and the balance goes down.

Unfortunately there are two common mistakes people unknowingly make with interest only payments. 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

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

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