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Private Mortgage Notes - Currently Selling?
Attract more buyers, sell faster, discount price less, and close faster by offering to hold back the note. |
Currently Selling?
Perhaps you haven’t yet sold your house, but are wondering if offering owner financing is an option for you. Generally it is a very good option if
- You hold a high percentage (>65%) of the value in equity.
- You don’t need all of the value in cash immediately.
- You will be able to pay off any remaining mortgage balance you owe at the time of closing this sale, using a Simultaneous Close if needed.
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Simultaneous Close:
By pre-arranging a Simultaneous Close, the seller turns around at closing and sells for cash a portion or all of the future payments just agreed to with the buyer. This second transaction is arranged in advance, so that it also happens at closing, completely transparent to the buyer.
See Simultaneous Close Overview to understand more information about this great program. |
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Expected Benefits:
By offering owner-financing, you are willing to do what most sellers aren’t. This is attractive to more buyers, and can result in certain benefits to you:
- You will attract more buyers. Many potential buyers may be new to an area, self-employed, have fluctuating income, or be without established credit. Perhaps their credit isn’t perfect due to a recent divorce or bankruptcy. These could be great buyers, but bank regulations deny them credit for a traditional loan. Therefore they are motivated buyers.
- You can command better pricing with less discounting. It is accepted that the owner is taking more risk, both of foreclosure as well as market interest rates going up. The seller cannot spread these risks across a portfolio of loans as is the case with mortgage companies or banks. Therefore the seller can negotiate a fair, above-market interest rate which the buyer is free to refinance later assuming they establish credit and prevailing interest rates are lower.
- Lower Closing costs and faster closings. Once owner-financing terms are agreed to, buyers and sellers can avoid some of the closing costs such as origination points and junk fees like doc prep fees. Coupled with no bank or underwriting application, closings can happen quicker.
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Contact Us for More Information:
Contact us at Expedited Capital Funding. We will be happy to discuss any of these options with you, to see how they might benefit your situation. Expedited Capital Funding is in the business of negotiating transactions on privately held mortgages and contracts for deed locally and nationwide. We do not originate loans, nor provide real estate consulting services. Once you hold a private mortgage, we can get you a great price for your note and work to structure a purchase that meets your needs. |
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