Seller Financing Tips

26 03, 2018

What To Do If A Real Estate Note Stops Paying

2018-06-04T10:54:37-06:00

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 from the property. It goes without saying that you should always comply with all debt collection laws when dealing with a borrower/payer that gets behind on payments. That said, you [...]

What To Do If A Real Estate Note Stops Paying2018-06-04T10:54:37-06:00
2 02, 2018

Note Seasoning and Verifiable Payments

2018-06-04T10:58:06-06:00

Here is something you might not have thought of…There’s not just one single item that determines the value of your real estate note. It's actually a combination of multiple variables including payment terms, interest rate, equity, property type, the buyer’s credit, and note seasoning. That last one, note seasoning, might sound a little cryptic, but really breaks down to being one of the biggest potential performance indicators. What is Note Seasoning? In note [...]

Note Seasoning and Verifiable Payments2018-06-04T10:58:06-06:00
18 01, 2018

What does LTV and ITV in Note Investing Mean?

2018-06-04T10:58:57-06:00

Knowing the value of things is important—and real estate and mortgage notes are no different. Whether you are exploring offering seller financing or looking into selling a note, understanding the value what you are providing or own is paramount. Not only for your financial safety but for reselling down the road as well. What is LTV? Loan to Value, or LTV, is an indicator of potential consistency. Shown as a percentage, LTV tells [...]

What does LTV and ITV in Note Investing Mean?2018-06-04T10:58:57-06:00
26 12, 2017

What are ‘Face Rates’ and ‘Discounts’ On Notes?

2018-06-04T11:01:06-06:00

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 Note? Also known as the ‘present value,’ the face rate is simply the interest rate on the note and mortgage. The ideal face rate for a note depends on which party you [...]

What are ‘Face Rates’ and ‘Discounts’ On Notes?2018-06-04T11:01:06-06:00
21 03, 2016

5 Reasons Owners Offer Seller Financing

2018-06-04T11:10:05-06:00

Why would a seller allow a buyer to make payments over time for the purchase of property? Wouldn't the seller rather get paid now and require the buyer to obtain a bank loan? Here are 5 reasons property owners offer seller financing: 1. Reduced Marketing Times What is the first thing a real estate agent does when property is not moving and has been on the market for 60 to 90 days? They [...]

5 Reasons Owners Offer Seller Financing2018-06-04T11:10:05-06:00
21 03, 2016

Avoid Three Seller Financing Mistakes

2018-06-04T11:11:12-06:00

Would you rather have $97,000 to sell your $100,000 note or only $80,000? The difference in usually comes down to the big three. Here’s the three biggest mistakes note sellers make and how to avoid flushing money down the drain. Mistake #1 – Failing to Check Credit The payer’s credit report lets you know how timely they have paid bills in the past. This is a good indicator of how they will pay [...]

Avoid Three Seller Financing Mistakes2018-06-04T11:11:12-06:00
20 03, 2016

Seller Financing – How Much Can The Buyer Afford?

2018-06-04T11:11:45-06:00

Many sellers accept owner financing without any idea of how much the buyer can actually afford to pay. The last thing a seller wants is to stress over receiving monthly payments or worse, getting the property back through foreclosure. 3 Ways to Calculate Payment Affordability Before Accepting Seller Financing The amount a buyer can afford to spend on a house depends on their income, overall debt, cash they can put down, credit rating, [...]

Seller Financing – How Much Can The Buyer Afford?2018-06-04T11:11:45-06:00
20 03, 2016

Seller Financed Notes and Interest Rates

2018-06-04T11:12:21-06:00

The interest rate a seller agrees to accept when providing owner financing to the buyer has a large impact on the note’s value. Unfortunately, many sellers overlook this important decision Why Private Mortgage Note Interest Rates Matter Inflation Fighter Each year it seems the cost to buy the basics just keeps going up. It’s not your imagination; it’s inflation. In fact in July 2008 that inflation rate was 5.6 percent higher than in [...]

Seller Financed Notes and Interest Rates2018-06-04T11:12:21-06:00
19 03, 2016

What is Seller Financing?

2018-06-04T11:12:52-06:00

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. This private financing by the seller can take the place of a bank loan or be in addition to a conventional mortgage. The payment amount, interest rate, and other terms are agreed upon between the buyer and seller. The amount financed by the seller will depend upon the [...]

What is Seller Financing?2018-06-04T11:12:52-06:00
18 03, 2016

Sell Property Fast With Owner Financing

2018-06-04T11:14:16-06:00

When a property isn’t selling most real estate agents are quick to suggest a reduction to the sales price. It is common to see the tag line “Price Reduced” added to for sale signs, listings and ads. Rather than just reducing price... consider offering owner financing to sell a property quickly! In today’s real estate market obtaining a mortgage can be a large stumbling block to home ownership. In the midst of this [...]

Sell Property Fast With Owner Financing2018-06-04T11:14:16-06:00
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