OfflineI understand what a note is and why people are interested in buying them. I recently had a conversation with a man, who wanted to purchase a house I was trying to wholesale and asked me if I was willing to do a contract for deed, at first I was iffy but I then realized (thanks to this site) that I could sell the note and get the cash I wanted in the first place. So, my question to you note buyers is this. What is a good discount to give on a new note? 15%? 20% I want it to be something that would get it sold. The plan was to increase the sale price, and down payment because I would be financing, and then sell the note at 20% I'm still getting all my money, and a little extra AND getting the property sold. All info is appreciated.
Cathy
Cathy B
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Just wanted to bring to the top to get some feedback.
Cathy
Cathy B
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When you are creating notes you will want to try to get the most as an offer as you can. If you can create a good note and give a 20% discount buyers will love you.
Here are some items to consider:
- Pull Credit. Get a credit report and score for them. Charge them for the cost as well.
- Get a loan application and check all their references.
- Get as much down payment as possible.
- Give an interest rate about 3 - 5% above mortgage rates
- If you will create a balloon make the balloon for 5-7 years.
- Try to get the payments as high and manageable for them to pay.
If you wait for the buyer to pay a few payments (3-6) or more you will have a better buyers pool because they feel more comfortable with a track history of the buyer.
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125
Thank you. That is great information and will keep all those things in mind if I decide to do owner financing.
Cathy
Cathy B
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Here is an interesting thought:
When selling a property, if you sell using seller financing and promissory notes you will be able to sell your property approximately 25% faster than conventional financing and this percentage may actually be higher in some areas.
The savings on time when selling the property can add thousands of dollars to your pocket because you will save your holding costs. Instead of paying for a mortgage, taxes, utilities and insurance for the normal sales time you sell faster and keep these expenses as profit (assuming you took the correct amount for holding costs in your offer formula).
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125