With all the talk about buying and selling notes, does anyone actually take a pause to see IF they should sell their private mortgage note? Course the usual short answer is, “Well, depends on how much I can get for it.” – In reality, you might want to delve a bit deeper. Ask yourself the following five questions when deciding to sell. Did you want to carry back the note in the first place? Many people never wanted to become note holders to begin with. They may have taken back the note to … [Read more...]
Obtain Pricing on Notes in 3 Easy Steps
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What is a fair price for a cash flow note in today's market? Here are 3 easy steps that brokers and sellers can use to receive pricing before they sell a note. … [Read more...]
Gain Privacy and Protection with Land Trusts-Part 1
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Not everyone wants to be a public figure! Privacy and protection can be easily accomplished with the use of a land trust. … [Read more...]
Temporary Seller Financing
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Who wants to wait for the monthly note payments to trickle in over the next 5, 15, or 30 years? It makes sense that more sellers would be willing to carry back owner financing for the buyer if they knew how to sell all or part of their note for cash shortly after closing. … [Read more...]
Safekeeping the Original Promissory Note
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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 sell and assign the note payments to an investor, the investor will ask for the original note to be provided at closing. … [Read more...]
What is Note Seasoning?
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“Seasoning” is the term used to describe the amount of time the payer has been making payments. The general rule of thumb is the longer the better, with 12 months or more optimal. That is not to say that a note won’t be sold unless there is a lot of seasoning. It just means the investor will be looking at other variables of the deal that minimize risk. … [Read more...]
What is Seller Financing?
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When a seller allows a buyer to make payments over time for the purchase of property, it is known as owner financing or seller financing. … [Read more...]
What is a Note Discount?
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This is usually the first question on everyone’s list. “Discount” is essentially the difference between how much is currently owed on the note versus how much the investor is willing to pay for it. … [Read more...]
