With the economy and real estate markets on the decline seller financing is on the increase. The installment sale is being pulled out of the toolbox as an alternative financing method to conventional loans. As the owner financing method becomes a frequent topic among real estate agents, investors, and discussion boards there are inevitably some misconceptions being … [Read more...] about Top 3 Seller Financing Myths
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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?
Should You Work with Private Investors?
With the stock market plummeting by the minute, you may have a few friends, business associates, or relatives asking more about notes – specifically investing in them. There is no question investing in notes can be a very lucrative venture. If you have your own money you can receive a great yield. If you don’t have your own capital, you can “broker” the deal to a Funder for a … [Read more...] about Should You Work with Private Investors?
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?
What is Time Value of Money?
We’ve all heard the phrase “Time is Money”. But what does it really mean and why does it matter in the discounted note business? Here’s the short and simple answer! Money today is worth more than money tomorrow due to its ability to earn interest. The Time Value of Money concept puts a price on the amount of time an investor has to wait for an investment to … [Read more...] about What is Time Value of Money?