Using a balloon payment with owner financing can be a valuable addition to a mortgage note or land contract. Unfortunately many sellers and buyers unknowingly combine a balloon payment with high risk factors turning a positive into a negative. Be sure to avoid these common pitfalls when considering seller financing with balloon mortgages. Five Balloon Mortgage … [Read more...] about Owner Financing – Avoiding Balloon Mortgage Pitfalls
Seller's Corner
Lease Option or Seller Finance?
When a real estate market turns soft the property marketing ads become peppered with offers to lease option and owner finance. Most property owners understand the seller’s market has quickly turned to a buyer’s market requiring them to think creatively and consider concessions. … [Read more...] about Lease Option or Seller Finance?
Need to Move a Property? Consider Owner Financing!
When a property isn’t selling most real estate agents are quick to suggest a reduction to the sales price. It is common to see the tag line “Price Reduced” added to for sale signs, listings and ads. Rather than reducing price it pays to consider offering owner financing to sell a property quickly. … [Read more...] about Need to Move a Property? Consider Owner Financing!
Should I Owner Finance a Second Mortgage?
More and more sellers are being asked to carry back a second mortgage for the buyer – especially with the banks still keeping a pretty tight reign on lending. While seller financing can be a viable alternative to bank loans when it is the buyer’s primary obligation or first lien, a second lien has considerably more risk. … [Read more...] about Should I Owner Finance a Second Mortgage?
Structuring Notes for Top Dollar Pricing
The terms of owner financing dramatically impact the price an investor is willing to pay should the seller ever decide to sell their note, mortgage, trust deed or contract. Use these optimum terms to structure a seller financed transaction for top dollar pricing. … [Read more...] about Structuring Notes for Top Dollar Pricing