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Maximize your benefit with Mortgage Notes The number one question we were asked about mortgage notes is how much the note is discounted when you sell it. The value you receive when selling your mortgage notes very much depends on how well you structured the notes. We can help you to structure the notes so that the discount is minimal when you sell them. Before you offer owner's finance get more information on how to properly create private mortgage notes. We provide free advices on mortgage notes by phone or email so contact us before you sign on that dotted line. The creation of private mortgage notes through owner financing has been used extensively by the professional real estate investors. There is no reason why the average home sellers cannot use this power tool to their advantage. The same advantage the professional investors have enjoyed for years. Private mortgage note provides a number of benefits. It helps you to attract more buyers who would not be interested had owner financing not available. You can sell your property faster while saving the buyer a lot of money in closing costs. You also have a lot of flexibility with private mortgage notes: you can receive payments every month at an interest rate significantly higher than the market rate and if at any time you need a large sum of money you can sell part of the note or the entire note for immediate cash.How are private mortgage notes created?. Let say you have a property for sale. It could be your home or an investment property. You find a buyer with a good job and is able to make the payments and prepares to pay the asking price. However his/her credit score is not good enough to qualify for the loan. (There are some 30 million people in the US with bad credit that makes it difficulty for them to obtain loans). The buyer needs you to provide seller financing. Unless you have other qualified buyers or are prepared to wait you should give it a serious consideration. A lot of people are apprehensive about seller financing because they perceive that it is too complicated. The additional paper work is really not that bad. Your local title company or real estate attorney would be able to handle all the paper work for you. If you need help we can refer you to reputable firms who can assist you with the documentation. You finance the purchase for the buyer and create a mortgage note (also known as promissory note or trust deed in some states). A mortgage note is a written legal document that records the amount of debt and the terms of payment. The buyer gets the house he/she wants, saves a few dollars on closing costs and you get a nice stream of income. However at a later date you may have a situation that requires a large sum of money or simply don't want to wait for years to collect the money. Unfortunately you cannot demand the payor to pay out the balance of the note immediately. However you can sell your note - the entire amount or just part of it for immediate cash. In fact, unless you need all the money straight away the best option would be our half-and-half solution. No, it is not the dairy variety!. Half-and-half solution is a partial sale of your note where you receive half the value as a lump sum upfront and then after a fixed period of time you will receive the other half in installments. This could be an excellent tool to ensure regular income later on, maybe in your retirement. It also reduces the overall discount on the notes. Contact us today for a free estimate. If your situation is such that you must have the money straight away at the time of closing you can still use owner finance together with a technique known as simultaneous closing. We buy the note off you a few minutes after you and the buyer create the note. We will help you to structure the note properly so that you get the price you want.  |
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