What is a Good ITV?

Sellers and investors often ask what ITV (Investment to Value) they should target when buying or selling a private real estate note. You may have seen that some note investors claim they will go 85, 90, even 95 percent ITV. Frankly, I have yet to really meet them when it comes down to funding a deal in the current market. As a refresher, the ITV represents how much is invested or paid for the note in comparison to the property value.  It is a different ratio then the buyer’s LTV (Loan to … [Read more...]

Why Buy Title Insurance?

Does the seller really own the property?  Are there any liens?  Is there legal access?  Does anyone else have a claim or right to use? Does the buyer have outstanding judgments that might attach when they purchase the property?  These are just a few of the questions you will want answered with a title report when considering owner financing. … [Read more...]

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...]