While rental properties offer attractive monthly income, there just might be a much better option. Here’s several reasons to offer owner financing instead of being a landlord... Benefits of Seller Financing Over Renting Out Your … [Read more...]
Mortgages Versus Promissory Notes
When purchasing real estate with financing, you typically need to sign two specific documents to borrow money: a mortgage and a promissory note. In some states it is a deed of trust and a promissory note. For note investors and new homeowners, … [Read more...]
What are ‘Face Rates’ and ‘Discounts’ On Notes?
If you're interested in seller financing or ready to sell your note, the terms ‘face rates’ and ‘discounts’ are probably words you have heard thrown around. If they aren’t, here’s an important quick overview. What is the Face Rate of a … [Read more...]
Understanding Note Performance – Performing vs Non-Performing Notes
Not all mortgage notes are created equal. With so many different factors going into the value of seller-financed mortgage notes, it's no wonder some are worth more than others. One of the most significant value indicators? Note … [Read more...]
What is Real Estate Note Due Diligence?
Before an investor pays cash for a real estate note, they perform what is called “due diligence.” This is really just a fancy word for research. You can simplify the process by being prepared for these common note investor requirements. When an … [Read more...]
Verify Taxes and Insurance
Worried the buyer won’t make payments? Understandably, this is a common concern by sellers using owner financing. After all, an owner-financed note is one of the seller’s most valuable assets. Unfortunately so many sellers fail to protect … [Read more...]
Structuring Notes for Top Dollar Pricing
The terms of owner financing dramatically impact the price an investor is willing to pay should the seller ever decide to sell their note, mortgage, trust deed or contract. Use these optimum terms to structure a seller-financed transaction for top … [Read more...]
What To Do If A Real Estate Note Stops Paying
Let’s face it, no one buys a real estate mortgage or creates an owner financed note in hopes that the payments stop coming in. Although not the norm, payers do default on notes, stop paying, get behind on payments, or outright walk away … [Read more...]
Did you know that you don’t have to sell your entire note to receive a lump sum of cash?
Instead of selling your entire asset, many note sellers have taken advantage of selling just part of their future payments to get the cash they need today. With ‘Partials,’ owner financing doesn’t have to mean waiting years or decades to receive … [Read more...]
Is it Time to Sell Your Note?
Every day people line up to sell the mortgage note they carried back from the sale of a home. Although some people keep the note for the entire term, usually, at some point, there comes a time to sell the note and receive a lump sum of cash. Why … [Read more...]