Whether a seller, investor, or note broker, there are many opportunities to make money with owner financed or seller carry back notes. There is a lucrative secondary market for seller financed notes also known as the paper business. Here are a few of the most common ways people make money in the note business. Maximize Selling Profits A seller often takes back financing for a … [Read more...] about Moneymaking Opportunities with Notes!
Note Buying Blog and Articles
What is a Partial Note Purchase?
When a seller allows a buyer to purchase property on installment the terms of repayment are usually spelled out in a Promissory Note or Real Estate Contact. Sellers may also elect to sell and assign their rights to future payments. When an investor purchases all the remaining payments it is considered a full purchase. When an investor purchases just a portion of the remaining … [Read more...] about What is a Partial Note Purchase?
Note Investor Registry Changes
Bayview First Funding, a subsidiary of Bayview Financial, will no longer be accepting new submissions for seller financed mortgage purchases through its Texas based note buying division, effective Friday August 1, 2008. Formerly known as Interbay Funding, this company was introduced to the note buying community in 2001. With competitive pricing and access to securitization … [Read more...] about Note Investor Registry Changes
Real Deal #138 – Partial on Oregon Home
Welcome to Real Deals! It’s always easier to learn from real life so here we share information from actual owner financed transactions. Today' we are taking a closer look at a deal in Oregon. Mobile Home Seller Financing Example A husband and wife decided to sell a rental home to their tenant using seller financing. The property included a 2-bedroom stick built home, a … [Read more...] about Real Deal #138 – Partial on Oregon Home
Who’s on First?
Understanding the players in an owner financed transaction makes for profitable relationships. Here we explore the four primary team members along with common industry terminology. The Owner Financing Players Seller – Note Holder - Payee The seller owns the property being sold. If they finance a portion of the sales price for the purchaser through owner … [Read more...] about Who’s on First?
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...] about 5 Reasons Sellers Offer Owner Financing
Real Deal #137 – Condo 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. A developer successfully completed a nine-unit condominium building and sold one of the final units with owner financing. The purchaser had good credit but no money for a down payment. Florida Condo - Real Deal in Note Investing The … [Read more...] about Real Deal #137 – Condo in Florida
What is Note Seasoning?
“Seasoning” is the term used to describe the amount of time the payer has been making payments. The general rule of thumb is the longer the better, with 12 months or more optimal. That is not to say that a note won’t be sold unless there is a lot of seasoning. It just means the investor will be looking at other variables of the deal that minimize risk. … [Read more...] about What is Note Seasoning?
What Changes for the Payer?
"So if I sell my private mortgage note, what changes for the Payer?" This is a common question with a simple answer. Nothing changes for the payer except where they mail the payment. When a note is sold, the terms of the note remain the same. The payment amount, interest rate, and due dates remain the same. If there is a balloon payment or “bump” payments, they also remain … [Read more...] about What Changes for the Payer?
The Fair Credit Act
One question that is continually posed in this business is whether a cash flow investor has the legal right to access a person's credit file prior to purchasing a debt instrument. The rights of consumers are protected under The Federal Fair Credit Reporting Act ("Act"). Originally passed by Congress in 1970 and substantially overhauled in 1997, the Act regulates acceptable … [Read more...] about The Fair Credit Act