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...]