Seller Financing

Seller FinancingIf you are thinking of seller financing your property, you are not alone. According to Advance Data Service, Seller Financing accounted for 1.6% of all transactions above $30,000 in 2011.

That equates to somewhere around 120,000 notes and that is up from less than “a half of a percent in 2008”. That number has surly grown in 2012.

Seller financing is rapidly emerging as the solution to the current crises in the conventional lending market. It is a smart alternative to conventional lending, by offering to finance the sale of their properties, owners are more likely to sell their real estate more quickly and at a higher price. These properties are selling up to 70% faster and the prices much closer to the retail market value. In Addition, sellers who finance can collect interest rates of 10% on their loans, much higher than rates offered on certificates of deposit.

SELLER FINANCING IS FILLING THE VOID CREATED BY THE MORTGAGE CRISES

When you create a seller financed note, It should look, feel and taste like a conventional mortgage. The better you create your note, the higher the value of that note on the secondary market if you ever decide that you would like to cash out instead of receiving the monthly cash flow. The due diligence needs to be performed on the borrower before the note is created.

The seller financing that you are creating needs to be done legally and professionally, to include the note itself as well as the documentation and fact checking on the borrower. You need to make sure that the buyer can afford the payments and that you are in compliance of the federal and state laws regarding TILA , RESPA and other applicable laws.

THE TIME TO THINK ABOUT A NOTE IS BEFORE YOU CREATE THE NOTE !!

Click below for a free, no obligation book that explains in detail the best way to create seller financing. It is not just a pamphlet, it is 96 pages written by a veteran in the industry with over 30,000 notes bought and sold worth over half a Billion $.

It is well worth the read and it’s our free gift to you.

Free E-Book: Seller Financing