1. What is a note? - A written document that states a promise to pay, and the terms which include the amount, interest rate and length of time in which to fulfill this promise.
2. What if I want cash now instead of waiting 30 years to get paid back? - That's where I come in. I work with investors who are interested in purchasing your note (or your client's note) from you so you can have the money you need. This way, you don't have to worry about late payments or non-payment any longer!
3. Who invests in notes? - Actually, there are thousands of individuals across the country who invest in notes. However, they are small time compared to the banks and pension fund managers -- they are the biggest investors in promissory notes because they are considered to be fairly safe investments. Additionally, investors will know their yield before they even buy the note -- you can't get that from investing in the stock market!
4. How long will it take before I get my money? - Normal closing time is 2 to 3 weeks, once we have lined up a buyer.
If you have any other questions, please feel free to contact us. taxeswilltravel@aol.com Using the Owner Will Carry or Seller Financing Method to Sell Any Property ASAP If you have real estate that you need to sale immediately and for what ever reasons the property is not selling as fast as you would like; consider the "Owner Will Carry" technique. Carry back a second or even a third for six months and then turn your trust deed into cash. Will the Investor discount your note in six months? Yes. How much? It depends on several factors: - Equity in the property
- Credit score of the payor
- Payment history or late payments
- Number of payments that have been made
- The yield or price an investor may offer
It can go as high as a 35% discount on the real estate note. This is 65% cash NOW, as opposed to waiting 10, 15, or 20 years. Many real estate investors view the discount as a cost of doing business and include a part of the cost into the selling price of the real estate. Example: You are selling a nice piece of property in a questionable neighborhood. People who could qualify for the property choose to buy in different areas. However, there are many people who love the area and would not think of living anywhere else. BUT, they often times do not have the down payment. They have long-term jobs, good monthly income, but no down payment. So you offer Seller Financing, and sell the note in 6 months for cash and move on to the next property. This type of transaction is often times suggested for tax clients who are selling rental property and want to control the amount of capital gains taxes that they incur each year. | 