We buy notes on single family residences, town houses, improved and unimproved land, mobile home with land, commercial property, duplexes and condos. Most of the notes we buy are sold by private individuals and private companies not from banks. With owner financing, seller hold mortgage security by deed of trust or promissory note. Seller can amortize terms up to 40 years. Balloon Payment are often incorporated into the terms of the note With all inclusive mortgages, Seller carries a promissory note and mortgage for the entire balance of the home price less down payment.
Here are some of the Pros of Seller Financing but we always advise you to consult an Attorney
- This process makes your home stand out and getting it sold faster
- You get to sell your house “as is” instead of making costly repairs
- We will help you get a better interest rate
- If the buyer stops making payments, you get the house back and keep down payment.
- You can sell promissory note right away to an investor.
Here are few reasons why you might not opt in for Seller Financing
- Make sure your home have enough equity.
- The buyer could stop making payments at some point
- You may incur cost in repairing your house
So here is a breakdown of how we can help realtors, investor and home owner. For realtors here are the steps you have to follow to get paid:
- Properties that are expired listing are a great source of deeds for realtors
- Market home owner will be finance with 10% down payment
- The Home owner wants 100k to purchase
- The buyer could have less perfect credit
- We feel comfortable with an LTV of 80%
- Seller will take back a second mortgage for 10k
- Every new Note to be bought at closing will be 80k based on buyer credit. Note value 80k- Interest rate 10%, Terms 30 years with 7 years balloon. Note could be purchased for $72,162 and the realtors get paid.
For an Investor,
- You have to follow same steps from 2 to 8 as realtor
- There is no seasoning on property, you could buy today and sell tomorrow
- You could close simultaneously upon creation of note. This will help free up cash to purchase other deals.
- There is additional exit strategy
For Home Owners, We will help you get through stress and frustration. Here is a breakdown which I call the Home owner hierarchy of Needs.
How to Sell a Note
Selling a note is very easy. Simply call us at 1-491-9761 and we’ll take you through the process step by step. In most cases, we do all of the work. Most of the people we work with have never sold a note before, so you needn’t worry about not understanding what to do.