“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...] about What is Note Seasoning?
Seller carry-back note
What is Seller Financing?
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...] about What is Seller Financing?
What is a Note Discount?
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...] about What is a Note Discount?