Owner financing seemed like a good idea at the time. Let the buyer make payments and get the property sold. After all the seller carry back is known for attracting purchasers and providing quick closings, without the hassles or fees of a conventional bank loan. But circumstances change and many sellers would prefer a lump sum of cash today rather than monthly payments that trickle in over the next 10, 20, or 30 years. If you are receiving payments on a mortgage, trust deed, or contract … [Read more...]
Owner Financing vs. Seller Financing – What’s In a Name?
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As cash flow note brokers we know that owner financing happens when the seller of property accepts payments over time from the buyer. This creative financing helps buyers purchase homes without traditional bank loans. … [Read more...]
Get Reliable Pricing When Selling a Mortgage Note!
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Wondering whether to trust the pricing for the sell of a mortgage or land contract? Here’s how to know if it’s a firm offer or just a soft quote when going to sell a private mortgage note. … [Read more...]
Owner Financing – Avoid 5 Balloon Mortgage Pitfalls
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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. … [Read more...]
Owner Financing – 21 Insider Secrets You Must Know Before Selling a Mortgage Note
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What if you had inside information? What if there was someone who really knew the secrets that could make or save you thousands of dollars? Well, there is... The time has arrived to remove the cloak of mystery surrounding selling or brokering notes. There are simple truths surrounding owner-financed notes that should be revealed. Too many people leave money on the table through lack of information. Worse yet, others prey on that lack of knowledge. Whether a note seller, buyer, … [Read more...]
Real Deal #149 – Seller Financing, Second Liens, and the 80-10-10.
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Welcome to Real Deals! It’s always easier to learn from real life so here we share information from actual owner financed transactions. When the bank loan and the buyer’s down payment don’t add up to the sales price, a seller might consider owner financing the difference. Here’s how a classic 80-10-10 worked with owner financing on a four unit residential property in Baltimore, MD. … [Read more...]
What is a Payer Estoppel?
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Prior to purchasing a seller financed note, the investor might ask for a payer estoppel. This simple one page letter or document is sent to the person making payments on the note, mortgage, deed of trust, or real estate contract. The estoppel explains the investor is contemplating the purchase of the note, reassuring the payer that all terms and conditions will remain the same. It then summarizes the information on the note including current balance, interest rate, terms of repayment, and … [Read more...]
What’s Your Discount?
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How do you answer a note seller when they ask, “How much will you pay for my note?” The simplest answer to “What’s Your Discount?” would be “It depends!” But what you say next is very important. Here’s how we like to answer the seller’s first pricing question. “How much we pay really depends on your note. Each transaction is unique so we look to 5 key factors for pricing. These include the type of property, down payment or equity, the buyer’s credit, how long the buyer has been paying … [Read more...]
Real Deal #144 – Mixed-Use in Oklahoma
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Welcome to Real Deals! It’s always easier to learn from real life so here we share information from actual owner financed transactions. The creation of a note does not always follow a straight path. Often the terms are modified to fit the needs of the transaction. This note in Oklahoma started out as a sale of business, then included real estate, and was eventually modified to meet the repayment needs of the buyer. … [Read more...]
Real Deal #143 – New York Church Note
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Welcome to Real Deals! It’s always easier to learn from real life so here we share information from actual owner financed transactions. Think it’s hard to get a home loan? Imagine the challenges that come with financing a church! Here’s how seller financing offered a creative solution to provide meeting space for a New York congregation. … [Read more...]
