Calculating the payment needed to cover just the interest on an owner-financed contract or promissory note is simple. Just follow three easy steps and avoid two common pitfalls. Follow 3 Easy Steps To Calculate Interest Only Step 1: Obtain the current principal balance and interest rate from the land contract or promissory note Step 2: Times the balance by the interest … [Read more...] about How to Calculate Interest Only Owner Finance Payments
Great news! The IRS has specifically answered "YES" to this question. It seemed pretty straight forward that owner financed transactions involving a deed to the buyer and a note and mortgage (or deed of trust) back to the seller would let qualified buyers take the First Time $8,000 Homebuyer Credit. However, some wondered if … [Read more...] about Does Seller Financing Qualify for the $8,000 First Time Homebuyer Tax Credit?
Whether you are new to the industry or a seasoned veteran, a helping hand is always appreciated. This is especially true when entering into the owner financed mortgage industry as a new note broker. Why spend years recreating the wheel to gain the knowledge you need to make money today? Take advantage of the knowledge, experience and volume pricing offered by a Master Broker … [Read more...] about Cashing in on Experience – Using Master Broker Services
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?
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