Creative Strategy to Buy or Sell Property

It is a well known fact that offering Owner Financing sells properties fast… especially with properties and / or buyers that do not conform to traditional lending requirements. But most sellers do not want to Tote the Note….. They want to cash-out at closing, or at least get a major portion of the sales price to pay off existing liens and meet other cash needs.

Using the Simultaneous Closing strategy, the seller creates the note at full appraised value, gets a down payment from the buyer, and creates a seller financed mortgage for the balance. We then structure the closing so that the seller sells all or a part of that mortgage for cash at, or right after closing. The amount of cash the seller receives at closing depends upon the discount on the note--but usually is between 85% - 93% of the note balance. The discount is determined by the present value of the future cash flow, the type of property, the note structure and most importantly, the buyer's credit. We will help you structure the transaction to minimize the discount and receive the most cash for your mortgage.

Advertise the property "Owner will Finance, no points, no PMI"
Set the sales price equal to the appraised value
Receive calls from the ad and screen your prospective buyers. If a buyer is interested in purchasing the property, you should collect a loan application and an Authorization to Release Credit information (We will be happy to provide the forms for you).
Fax or email the forms to our office. We will help you to structure the Sales Contract and Note to minimize the discount. You decide if the offer is acceptable.
At closing the seller sells the property to the buyer and sells the note to the investor. The funds are wired to the closing agent. The funds are used to pay closing costs and the balance is collected by the seller. The buyer then makes the payments directly to us each month.

Please note: We and our investors are not "lenders" and do not create or originate loans. We only purchase existing mortgages and that is why the seller will first create the note and then in turn, sell it to us.

Feel free to look at our Frequently Asked Questions for more detailed information.