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!
Seller's Corner
Avoid Three Costly Mistakes!
Would you rather have $97,000 to sell your $100,000 note or only $80,000? The difference usually comes down to the big three. Here’s the three biggest mistakes note sellers make and how to avoid flushing money down the drain. Seller Financing Mistake #1 - Failing to Check Credit The payer’s credit report lets you know how timely they have paid bills in the past. … [Read more...] about Avoid Three Costly Mistakes!
Safekeeping the Original Promissory Note
The Promissory Note is an important legal document that should be kept in a safe place, and here is why! The note is a promise to pay or IOU from the buyer, spelling out the amount and terms of repayment. In legal jargon it is known as a negotiable instrument. Similar to a check, the original must be presented to collect or prove ownership. If the seller desires to … [Read more...] about Safekeeping the Original Promissory Note
What’s the Big Deal with Note Rates?
The interest rate a seller agrees to accept when providing owner financing to the buyer has a large impact on the note’s value. Unfortunately, many sellers overlook this important decision. Here’s why the interest rate on a note is such a big deal. Inflation Fighter Each year it seems the cost to buy the basics just keeps going up. It’s not your imagination; it’s … [Read more...] about What’s the Big Deal with Note Rates?
Verify Taxes and Insurance
Worried the buyer won’t make payments? Understandably, this is a common concern by sellers using owner financing. After all, an owner financed note is one of the seller’s most valuable assets. Unfortunately so many sellers fail to protect their asset when it comes to verifying current property insurance and taxes. … [Read more...] about Verify Taxes and Insurance