Any investor or note buyer looking to purchase a private mortgage is asking two big questions… 1. What is the likelihood of the payments continuing? and 2. What happens if the payments don’t continue? To answer these questions, note buyers look at a variety of factors. … [Read more...]
Charging Late Fees on Notes
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Successfully owning or buying cash flow notes requires a solid plan for collecting and servicing the payments. But what happens when the note payments are late? John Moren, a 25+ year veteran of the note business, explains the issues with charging late fees on notes. In speaking with our NoteSmith loan servicing software users, I sense a lot of confusion and unnecessary creativity concerning late fees around the country. Here are some issues we have seen over the last few … [Read more...]
What Private Note Buyers Can Learn from MERS
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Note Buyers take notice; a U.S. Bankruptcy Judge has now ruled MERS's business practices are unlawful. Heard of robo-signing, burger king kids, and attorneys promising to stop foreclosure? Well that’s all part of the MERS mortgage lending mess and it just got a lot harder than calling for a cleanup on aisle 5. What’s the impact? L. Randall Wray, Professor of Economics, wrote this: "United States Bankruptcy Judge Robert Grossman has ruled that MERS's business practices are unlawful. He … [Read more...]
The Seller Financing Solution – Note Investor Radio Interview
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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 … [Read more...]
How to Avoid Going Broke Buying Real Estate Notes
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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...]
Learn the Note Business in 60 Seconds?
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OK, you can’t really learn the cash flow note business in just 60 seconds, but this “speed round” of 11 questions will certainly get you started. Ready? Go… What is the Note Industry? The note business is the buying, selling and brokering of privately held notes. What is an example of a cash flow note? Ever see someone selling a property that says, “Owner will Finance?” That means the seller of the property is looking to “be the bank” and payments will be made directly to them. Seller … [Read more...]
Free Financial Calculator for Cash Flow Notes!
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Is the best financial calculator now free? If you struggle with calculating cash flow notes on the HP12C , HP10B, or the Texas Instrument BAII then you will want to check out this great offer! Advanced Seller Data Services (ASDS), a leading provider of marketing lists for seller carried notes, has released a series of free financial tools for note brokers and note buyers. Here's a sneak peak at the power behind these calculators from a recent ASDS press release: Tool #1 - A Financial … [Read more...]
How Partials Reduce Note Discount When Selling Mortgages
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Is the sticker shock just too much when discounting notes? It might be time to consider selling just some of the remaining payments. Note buyers have long used the partial purchase to reduce their exposure or investment risk, but it also has benefits for the seller. You see the time value of money makes payments due now more valuable than those further out in the future. The partial purchase takes advantage of this by letting the seller cash in the most valuable portion – the more … [Read more...]
Owner Financing, Seller Financing, Dodd Frank, Safe Act, and You!
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Tired of hearing about owner financing laws? We share your pain. First the Safe Act had a say on Seller Financing and then the Dodd Frank Act. Why the government would want to slow the housing rebound further by putting stringent restrictions on seller financing - one of the few alternatives to bank financing available in today's struggling economy - is beyond us. And it's not over yet. Government agencies are still sorting through how to implement portions of the laws affecting both … [Read more...]
