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 … [Read more...]
When Is The Right Time To Sell Your Note?
It probably sounded like a great idea to carry back a note to help facilitate the sale of your property. Matter of fact, you might have been told that if your situation changes in the future, you could sell your note for a lump sum of cash. This might leave you wondering, when is the right time to sell your note? Does it matter what the traditional real estate market is doing? What about the … [Read more...]
Selling A Mortgage Note Is Not Just About Price
One of the first questions a note seller asks is, "How much can I get for my note?" At the end of the day, that is what it is all about, right? Or is it? For some, selling a note is not just about price. For many people selling a note is about getting out of the hassle of collecting payments, dealing with defaulted buyers, reporting taxes, or having their money tied up for the length of the … [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...]