Future Payments or Cash Now... Let Us Help Find You a
Buyer For Your Note Today!
Creative home sellers who offer seller financing to potential buyers can often sell their houses more quickly (and at a higher price) in a slow market. In most cases if held long enough, mortgage notes will eventually reach maturity. In the current environment many mortgage note holders are facing a multitude of problems ranging from late payments, tax problems and yes; even foreclosures. During normal real estate cycles, most sellers will opt for CASH now, as CASH is always king.
While applying seller financing techniques isn't more difficult than traditional real estate sales, it is important to recognize that the buyers looking for seller financing represent a different target market than typical bank-financed customers.
Similarly, the process for obtaining large cash payment for the seller after a note is created varies from the conventional real estate closing technique as well.
Fulfilling a Seller's Need for Cash
In some seller-financed real estate situations, the property owner may have an immediate need for more cash than is available from the scheduled principal and interest payments. This situation often comes about when the seller needs to have enough money to pay off high-interest rate debts, business opportunities, family emergencies, divorce or to settle estate taxes. In most cases, the seller never intended on collecting monthly payments in the first place.
In order to quickly obtain a large proportion of the money due from the loan they just created, the seller could sell the monthly note payments to a buyer for a lump sum of cash. By locating someone willing to buy the note payments, the seller will have ready cash on hand for other investment opportunities or to reduce ones debt load. By selling your existing note, you increase your net worth without adding to your debt, thus increasing your overall credit score if you decide to seek financing in the future.
If you're considering seller-financing, it is advisable to have potential buyers for the newly-created cash flow at the ready. Barry Olfern & Associates has a nationwide network of institutional buyers consisting of large mortgage companies and banks to assist our clients in getting the best price for their note. By filling out the simple note analysis worksheet on our website, Barry Olfern and Associates can start the process looking for buyers before the note is created, or even before a seller-financed buyer is "lined up". This way, the property seller could have a buyer for the payment stream ready to make the purchase as soon as the new private mortgage is created. If you currently own a note, and would like a free quotation for your note please click here and complete the note analysis worksheet. This process is 100% secure and your privacy is protected.
Our Commitment to You
Once Barry Olfern & Associates starts the process of finding the ideal buyer, the seller should explain the details of the situation. While we won't be able to offer any legal advice or assist with the creation of a note, we are qualified to give general recommendations about what types of terms are attractive to note purchasers. Most importantly, we assist you in locating a buyer for your note. Often we receive multiple offers for your note and will present you with a minimum of two buyers to select from.
Remember, we are not note brokers, meaning we will not "show" the seller's note to buyers or act as a representative. We will only pass the information along to someone who would be interested. Once a commitment to purchase the cash flow has been established, the buyer will step in and complete the deal.
When working with a property seller who needs a lump sum of cash immediately after selling their real estate, contacting us early in the process of creating a real estate note makes sense. By involving Barry Olfern and Associates BEFORE a note is created, a property seller can receive invaluable input about the payment characteristics that note buyers prefer.
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