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 … [Read more...]
Seller Financing – How Much Can The Buyer Afford?
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, … [Read more...]
Seller Financed Notes and Interest Rates
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 … [Read more...]
What is Seller Financing?
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 … [Read more...]
Sell Property Fast With Owner Financing
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 … [Read more...]
