When people go to sell their home, the majority will still owe money on a loan from when they bought the property. Since few sellers own a property free and clear, what to do with this underlying lien is an important consideration with owner financing. … [Read more...] about Wraparounds with Underlying Liens
Note Buying Blog and Articles
Real Deal #148 – Seller Financing for IRA Investments!
Welcome to Real Deals! It’s always easier to learn from real life so here we share information from actual owner financed transactions. It can be challenging to obtain non-recourse loans necessary to finance the purchase of real estate in an IRA, 401(k), or other type of self-directed retirement account. Seller financing can be a viable alternative financing solution. … [Read more...] about Real Deal #148 – Seller Financing for IRA Investments!
Real Deal #147 – Estate Note in Arizona
Welcome to Real Deals! It’s always easier to learn from real life so here we share information from actual owner financed transactions. A seller-financed note is an asset. The seller can elect to hold the asset collecting payments, sell the note, or leave to heirs as part of their estate. Many heirs would prefer cash now rather than payments over time. A large number of notes … [Read more...] about Real Deal #147 – Estate Note in Arizona
What is a Payer Estoppel?
Prior to purchasing a seller financed note, the investor might ask for a payer estoppel. This simple one page letter or document is sent to the person making payments on the note, mortgage, deed of trust, or real estate contract. The estoppel explains the investor is contemplating the purchase of the note, reassuring the payer that all terms and conditions will remain the … [Read more...] about What is a Payer Estoppel?
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...] about Temporary Seller Financing
What’s Your Discount?
How do you answer a note seller when they ask, “How much will you pay for my note?” The simplest answer to “What’s Your Discount?” would be “It depends!” But what you say next is very important. Here’s how we like to answer the seller’s first pricing question. “How much we pay really depends on your note. Each transaction is unique so we look to 5 key factors for … [Read more...] about What’s Your Discount?
Real Deal #146 – Delinquent Taxes in Texas
Welcome to Real Deals! It’s always easier to learn from real life so here we share information from actual owner financed transactions. This Texas note deal found a seller scurrying to pay three years of back taxes that their buyer failed to keep current. Selling the note to an investor saved the buyer and seller from losing both the property and the note to a … [Read more...] about Real Deal #146 – Delinquent Taxes in Texas
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...] about Recipe for Success!
Working with Private Investors
There is a squeeze on Wall Street that is leading many note buyers back to Main Street. The drought of institutional money from the sub prime mortgage crisis is creating a resurging interest in working with private investors for the purchase of seller-financed notes. … [Read more...] about Working with Private Investors
McCain and Obama Agree!
If you watched the last Presidential debate Wednesday night you probably noticed that Barack Obama and John McCain agreed on at least one thing. The economy is in the tank and it needs HELP! Now that we have found common ground for economists, Democrats, Republicans, and Independents alike, what can we do about it? And what does this have to do with seller financing? … [Read more...] about McCain and Obama Agree!