Safekeeping the Original Note
September 15, 2008 by Tracy Z · Leave a Comment
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
Increase Value with Payment Histories
September 12, 2008 by Tracy Z · Leave a Comment
Keeping an accurate record of the payments received on the note shows how much the buyer still owes along with their payment habits. Plus, note sellers can also improve the value of their note by providing a verifiable payment history to the investor! Read more
What is Due Diligence?
September 11, 2008 by Tracy Z · 2 Comments
Before a note investor will pay cash to a seller for future payments, they perform what is called “due diligence”. This is really just a fancy word for research. You can simplify the process by being prepared for these common note investor requirements. Read more
Real Deal #142 – Balloon Note in Florida
Welcome to Real Deals! It’s always easier to learn from real life so here we share information from actual owner financed transactions.
It was a nice home in Florida with the seller asking $234,000. The buyer was eager to purchase the property and had saved almost 10% for a down payment. There was only one problem. The buyer was unable to obtain a conventional mortgage loan due to some past credit issues, primarily attributed to medical bills. Seller financing was the solution. Read more
Verify Taxes and Insurance
August 20, 2008 by Tracy Z · Leave a Comment
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
5 Reasons Sellers Offer Owner Financing
Why would a seller allow a buyer to make payments over time for the purchase of property? Here are five reasons sellers consider financing property rather than requiring the buyer to obtain a bank loan: Read more
