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Owner-Financing, also called seller-financing is
a term used for properties or businesses that have been
sold privately without the use of a traditional bank to
lend the borrower/buyer money.Instead, the seller of the
collateral ( a business or a property), will finance the
sale themselves and carry back a mortgage note
or a carry back business note.
The property or business seller will act as the bank
collecting interest on the money they lend. This
transaction can be very beneficial to both buyer and
seller as it allows the property sale to move much
quicker then a traditional transaction using a bank and
real estate agent, etc. In addition to the streamline
process, the borrower does not have to prove income
and debt-to-income which usually will not be possible
with a bank.
a term used for properties or businesses that have been
sold privately without the use of a traditional bank to
lend the borrower/buyer money.Instead, the seller of the
collateral ( a business or a property), will finance the
sale themselves and carry back a mortgage note
or a carry back business note.
The property or business seller will act as the bank
collecting interest on the money they lend. This
transaction can be very beneficial to both buyer and
seller as it allows the property sale to move much
quicker then a traditional transaction using a bank and
real estate agent, etc. In addition to the streamline
process, the borrower does not have to prove income
and debt-to-income which usually will not be possible
with a bank.
A good candidate to carry a mortgage note or a business note for is a person that has a decent credit score and the
ability to put down a above average down payment. A business or property seller using a seller-carry back note to
move a their collateral quickly must perform a small amount of diligence in order to minimize their exposure to risk
down the road. Risk is a term to describe the possibility of default/non-payment, property value decreasing, among
others.
Most people thinking about creating a seller-financed note do not usually like the idea of being a bank for the next 10 to
30 years (depending on the loan's structure), which is why we offer a exit strategy that most owner financed note holders
over-look which is: selling the seller carry-back note to a note buyer once the sale has been completed.
If you are think about creating a note to sell your property and then sell a note to a note buyer, you must structure the
note in a way to make it attractive to the mortgage note investor, thus increasing you chances of receiving top-dollar
for the seller-carry back note.
To learn more about creating a valuable mortgage note or business note to sell for top-dollar, click:
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| We are a Direct Note Buyer... so if you are thinking about selling a mortgage note or business note, contact us today and get your free quote - (800) 698-3650 |
Owner-Financing | creating a note to sell for top-dollar
Owner-Financing Note Tips
