Seller finance real estate transactions have increased over 800% since early 2007. In the mid-2000's, only 1 in 400 transactions involved seller financing - today that ratio is less than 1 in 50 and - some experts expect that number could be 1 in 10 in some markets within this year.
Seller financing fills the void left by the lack of conventional financing. The new strict borrower underwriting criteria, larger down payments and delay after delay by the mortgage company have left many buyers, sellers, agents and title closers with unfunded transactions. No one is happy.
Seller Financing to the Rescue! While not the first choice of some property sellers, seller financing can solve the most pressing problem - a property that won't sell, but incurs ongoing costs of mortgage payments, taxes, utilities, insurance and maintenance. However, we are finding a sizeable number of sellers who actually like the idea of carrying back a secured promissory note with interest at 8, 9 or 10 percent. Where else can they receive such returns with such safety and predictability?
We offer a turn-key service to property sellers and other real estate professionals. Structuring the best terms of sale, opening the marketing funnel to a greater number of buyers, performing all of the underwriting and due diligence of the borrower, providing standardized loan doc preparation, and provision of third-party loan servicing after the sale - which includes maintenance of property tax and insurance escrows and 1098 tax statements each year.
Most seller financed transactions are "home grown" and lack some or all of the key components necessary to provide both safety and maximum value to the noteholder (seller) should he or she decide to sell the note later for cash.
As notebuyers of over 30,000 notes, mortgages, and contract for deed instruments since 1980, we've seen it all. Poor structure, inadequate borrower underwriting, and lack of a standardized document product all result in less value and higher discount to the noteseller.
6 Critical Aspects of A Seller-Financed Transaction:Property type (asset class), condition and location Borrower credit underwriting Borrower equity (down payment) Loan or note structure - terms of sale Seasoning - history of payments Paperwork - documentation
Contact me if you need more information or help in any particular transaction.
We provide seller finance consulting services nationwide to individual property sellers, brokers and realtors, investors, title companies, attorneys, bankers, builders and auction companies - anyone involved in seller financed real estate transactions. Residential and commercial property.
We are a funding source for the purchase of notes, mortgages, and contract for deed instruments nationwide - both residential and commercial transactions.
Seller finance transaction specialist. Orchestrating and providing advice to create maximum safety and value for seller financed transactions. Buyer of existing notes and mortgages.