Consider Seller Financed Notes When Looking at a Property

If you’re interested in a specific piece of property, then make sure to look at all the options. Some will check into traditional financing and try to secure a loan with a lender or a bank. Another option is something called seller financed notes. This is a solution that can work in the favor of the buyer and seller if everything checks out on both sides.

A buyer will need to look into the seller’s history on the property. If the seller doesn’t have any liens against it, seller financed notes is a possibility. The buyer would make payments to the seller, rather than a bank or mortgage lender. The seller needs to check into the buyer’s financial history, as well as credit score, payment history, and their ability to keep up with monthly payments. Both parties should use a lawyer to make sure the conditions of the note are agreeable and accurate.

If the buyer is interested, they should make an offer towards the seller. You will need to make it very clear that seller financing is the way you want the purchase financed. Obviously, the seller needs to be agreeable. However, the seller usually gets paid top dollar on the property and the transaction will happen quickly.

Both parties will want to handle the purchase agreement the same way a normal lender would. The parties will have to negotiate the terms of the agreement, with one being the amount to finance. This will depend on how much the buyer puts down for a down payment. The payment time table needs to be considered, as well as the interest rate.

Seller financed notes can work for both parties if done correctly. However, the seller will want to make sure there are stipulations included if the buyer cannot make payments.

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Selling Your Seller Financed Note For Gold

The USA’s triple A credit rating has now been downgraded to a double A. Downgraded notes will be worth less and less as time goes on. Note holders of seller financed notes might want to think about cashing out now before things possibly get worse. There does not seem to be an end in sight for years to come with financial forecasters predicting possible further losses as time goes on. People are also cashing out now while they can to buy gold which is skyrocketing in price by the day. With gold currently sold at $1724.40 an ounce, investors will continue to keep a close eye on the price of gold which is lucrative by anyone’s standard.

Last weeks financial indicators witnessed one of the largest stock market fallouts since 2008. The Dow went down 634 points in one day. It was frightening for these shareholders to see such a drop in their bottom line just like that. NASDAQ lost 7% of its total value in one day with stocks plummeting. The S&P 500 lost 6.6% of its total value in one day. This resulted in them downgrading the good ole USA from a triple A rating to a double A rating. In addition to that, Bank of America lost 20% of their total value in one day according to David Favor of “NBC Nightly News”.

The results from this downgrade will be higher interest rates on loans for things like mortgages, credit cards, education, cars, etc. Gold is now on the upswing with prices for gold tripling in the last few years. Many people are now cashing out to buy as much gold as they can with the idea that the countries financial situation could get worse. The experts are predicting very much more of the same, that our present financial situation could potentially deteriorate even further. So it may be a good idea to get the most out your seller financed note while there is still time. Its really hard to say just how much the value of any seller financed note will go down resulting in further loses for our note holders out there with carried back paper.

So in conclusion, its safe to say that our current markets are in turmoil. Because our politicians haggled about policy way too long, we lost our triple A, S&P 500 rating which resulted in the nations leading financial experts predicting that our stock market will continue to fluctuate on this never ending roller coaster. This also means higher prices for everything we buy and uncertainty in the stock market which ultimately leads to fear which always results in stocks plummeting in this downward out of control spiral. And so as a means of financial rescue, many are turning to gold as a sound investment and cashing out their seller financed notes of all kinds just to buy as much of the precious metal as they can. Who knows what the financial future of our country will be in the next few years? No one can tell for sure at this point. The only thing that is known is that the financial future our country will continue to be in a state of uncertainty.

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The Advantages of Seller Financed The USA’s triple A credit rating has now been downgraded to a double A. Downgraded notes will be worth less and less as time goes on. Note holders of seller financed notes might want to think about cashing out now before things possibly get worse. There does not seem to be an end in sight for years to come with financial forecasters predicting possible further losses as time goes on. People are also cashing out now while they can to buy gold which is skyrocketing in price by the day. With gold currently sold at $1724.40 an ounce, investors will continue to keep a close eye on the price of gold which is lucrative by anyone’s standard. Last weeks financial indicators witnessed one of the largest stock market fallouts since 2008. The Dow went down 634 points in one day. It was frightening for these shareholders to see such a drop in their bottom line just like that. NASDAQ lost 7% of its total value in one day with stocks plummeting. The S&P 500 lost 6.6% of its total value in one day. This resulted in them downgrading the good ole USA from a triple A rating to a double A rating. In addition to that, Bank of America lost 20% of their total value in one day according to David Favor of “NBC Nightly News”. The results from this downgrade will be higher interest rates on loans for things like mortgages, credit cards, education, cars, etc. Gold is now on the upswing with prices for gold tripling in the last few years. Many people are now cashing out to buy as much gold as they can with the idea that the countries financial situation could get worse. The experts are predicting very much more of the same, that our present financial situation could potentially deteriorate even further. So it may be a good idea to get the most out your seller financed note while there is still time. Its really hard to say just how much the value of any seller financed note will go down resulting in further loses for our note holders out there with carried back paper. So in conclusion, its safe to say that our current markets are in turmoil. Because our politicians haggled about policy way too long, we lost our triple A, S&P 500 rating which resulted in the nations leading financial experts predicting that our stock market will continue to fluctuate on this never ending roller coaster. This also means higher prices for everything we buy and uncertainty in the stock market which ultimately leads to fear which always results in stocks plummeting in this downward out of control spiral. And so as a means of financial rescue, many are turning to gold as a sound investment and cashing out their seller financed notes of all kinds just to buy as much of the precious metal as they can. Who knows what the financial future of our country will be in the next few years? No one can tell for sure at this point. The only thing that is known is that the financial future our country will continue to be in a state of uncertainty. Notes

If you are wondering if a seller financed note is something that would benefit your then you should take a look at the pointers I have for you below, on how to find the best solution to your particular circumstances. Firstly, these notes are also known as carry back mortgages and vendor or seller finance. The names may vary but the premise is the same for each.

If you are wondering how seller financed notes may benefit you, then take a look at these statistics. Did you know that about a third of all transaction in the US real estate market involve seller finance? You may not know that around 80% of the small to medium businesses that are sold in the US are also involved in financing. Considering these statistics, you can see that this is a relatively common transaction that has been gathering popularity for some time now.

If you are wondering if this is a method that may benefit you then take a look at these advantages. If you have a buyer for your real estate and they are unable to or unwilling to apply for finance via a lender, then these notes are a great way to secure the sale.

You may also be able to ask a higher price for your real estate if you carry back some of the sales price on the property. If you don’t necessarily need the cash right now, and you like the idea of a long term income, you can achieve this with both principle and interest on the notes. Perhaps you have a property that is difficult to sell and the only way that you are able to do this is via seller financed notes, to ensure a buyer.

And finally, if you are purchasing a business there is a lesser chance of obtaining finance on the purchase of it, therefore seller financed notes are definitely a better way to go.

Posted in Uncategorized | Comments Off on The Advantages of Seller Financed The USA’s triple A credit rating has now been downgraded to a double A. Downgraded notes will be worth less and less as time goes on. Note holders of seller financed notes might want to think about cashing out now before things possibly get worse. There does not seem to be an end in sight for years to come with financial forecasters predicting possible further losses as time goes on. People are also cashing out now while they can to buy gold which is skyrocketing in price by the day. With gold currently sold at $1724.40 an ounce, investors will continue to keep a close eye on the price of gold which is lucrative by anyone’s standard. Last weeks financial indicators witnessed one of the largest stock market fallouts since 2008. The Dow went down 634 points in one day. It was frightening for these shareholders to see such a drop in their bottom line just like that. NASDAQ lost 7% of its total value in one day with stocks plummeting. The S&P 500 lost 6.6% of its total value in one day. This resulted in them downgrading the good ole USA from a triple A rating to a double A rating. In addition to that, Bank of America lost 20% of their total value in one day according to David Favor of “NBC Nightly News”. The results from this downgrade will be higher interest rates on loans for things like mortgages, credit cards, education, cars, etc. Gold is now on the upswing with prices for gold tripling in the last few years. Many people are now cashing out to buy as much gold as they can with the idea that the countries financial situation could get worse. The experts are predicting very much more of the same, that our present financial situation could potentially deteriorate even further. So it may be a good idea to get the most out your seller financed note while there is still time. Its really hard to say just how much the value of any seller financed note will go down resulting in further loses for our note holders out there with carried back paper. So in conclusion, its safe to say that our current markets are in turmoil. Because our politicians haggled about policy way too long, we lost our triple A, S&P 500 rating which resulted in the nations leading financial experts predicting that our stock market will continue to fluctuate on this never ending roller coaster. This also means higher prices for everything we buy and uncertainty in the stock market which ultimately leads to fear which always results in stocks plummeting in this downward out of control spiral. And so as a means of financial rescue, many are turning to gold as a sound investment and cashing out their seller financed notes of all kinds just to buy as much of the precious metal as they can. Who knows what the financial future of our country will be in the next few years? No one can tell for sure at this point. The only thing that is known is that the financial future our country will continue to be in a state of uncertainty. Notes

Pricing Seller Financed Notes

In the pricing of seller financed notes there many things taken into consideration. Some people like to just put a certain percentage on the dollar for every note priced, but there is so much more involved than that. In this discussion, I will outline about the different factors that make up the pricing of every note whether it is a note on a single family residence, land contract, mobile home, RV park, or a business. Buyers interested in any seller financed note will put a grade on that note which is determined by 6 different factors. The information gathered in these 6 different areas results in a final grade for the note. Once the note is graded only then can a final price be determined for that note.

The first and most important factor in the pricing of any note is equity which is the amount money already in the property. One can see just how important this information is to buyers, since they base 50 % of their decision on this bit of information alone. If a large amount of equity is already in the property when the note holder decides to sell their note, they stand to get a much larger price for their note than if they just started paying on their note and did not have much into it. Thus, the more you have into the note, the more you will get out of it.

Secondly is the credit score of the payor. The credit score of the payor is important for the following reasons. The higher the score of payor, the higher the payout will be on the note that’s up for sale. The buyers base 20% of their decision on this information, and will pay more for a note when they have information telling them they will be getting their monthly payments, on time, and without delays. That’s what a high credit score shows the buyers and that’s the kind of payor they will want to have sending them their monthly payments. Thus, a credible payor shines in the eyes of the prospective buyers.

This also leads to our next factor in note pricing of seller financed notes which is payment history. Every buyer will examine the payment history of the payor on the note to determine gaps in payments, late payments, or payments that just did not get paid at all such as delinquent payments. Another 20% of their decision comes from this information so it is important for any payor to have all their payments made on time without delays or gaps between monthly payments. The better these numbers are, the higher the payout will be for the note up for sale. The number of payments made accounts for 10% of their decision and fourth on our list of pricing factors. This is also called “seasoning.” If more payments have been made, more money is into the the property, thus having more equity which is most important as previously stated.

Fifth on our list is the type of note considered for pricing. There are seller financed notes on single family residences, mobile homes, land contracts, RV parks, condos, apartments, and businesses. So the list is wide and every note is different with different circumstances connected to it. And finally, the sixth factor in the pricing of every note is the position of the note whether it be a first position note or a second position note. First position notes will always get a higher payout than second position notes. This is so because the buyers who buy any second position note are also responsible for the payment of the first. Thus, it is always best to go into a seller financed note deal selling a first position note over a second.

In conclusion, note pricing is a very detailed well thought out process that involves six different factors. Of the six factors of seller financed note pricing, equity being the most important followed by the payor’s credit score. The buyers then look at payment history followed by the number of payments made. After that, consideration of the type of note and its position are all taken into account leading to the note receiving a final grade. Once the note is graded, it is priced and ready to be bought by its prospective buyers.

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Looking at Seller Financed Notes

Do you think that seller financed notes may be something that can help you in the purchase or sale of your property? If you have been considering this option when it comes to your real estate choices then there are some quick tips that you should try and remember. I have listed some advantages of using this method for you below.

Checking out the statistics on this popular method of selling and purchasing property it is easy to see why it is gaining popularity. Sometimes called carry-back mortgage, vendor or seller finance, the seller financed notes area of all real estate transactions is a very popular method of acquiring and selling real estate.

Statistically speaking there is around a third of all real estate transactions in the US that involve seller financing. This is an enormous percentage of property sales, and purchasing. It is even more popular in the sale and purchase of businesses throughout the US. Up to 80% of all business sales involve notes that sellers themselves finance. The beauty to these figures ins that it is a reasonably common procedure that has as huge amount of support and information on for the prospective buyer or seller to use.

Perhaps you are selling a property and you have a buyer that is very interested in the purchase of it, but is not wanting or not willing to go to a lender for the purchase price. In this case, the notes are definitely a good option in securing a sale and getting the property off the market. Perhaps your real estate was not able to be sold due to some other difficulty and the only way to actually make the transaction as through notes, this is also a great option in offloading a difficult property.

Some sellers find that they like the idea of seller financed notes because they can increase the purchase price on a property and ask more for it with the option of offering seller finance. This will enable them to receive a monthly income of principle and interest for the term of the notes.

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