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Arkansas, the 25th state admitted to the U.S. and the 29th largest, is well known for its wilderness and park areas.  Situated between these splendid locations are privately owned land, houses, and commercial buildings.  Some of them were sold using an Arkansas land contract, a mortgage, or a deed of trust.  Arkansas is one of the few states where any of these document types are acceptable.


Getting Started

If you are considering selling your property using owner financing and carrying a real estate note, do a few things first to improve your note.


  1. Have a realistic understanding of the value of your property.  Don’t assume that an independent appraiser would value certain improvements as much you do.
  2. Decide how much of a down payment that you will require from a buyer.  If you are selling a nice house that they will live in, then 10% may be enough.  For other property types, aim for closer to 20%.
  3. Decide on the interest rate and term to use, and know where you will be flexible in negotiations.  Use a rate a little above that charged by banks and try not to have the note outlive you.  In other words, if you are 75 years old, you will probably want a term shorter than 30 years.
  4. Decide what you want in a buyer.  Insist on checking their credit to ensure that they have a good credit score and are capable of making monthly payments.


Once you have a willing buyer and have agreed upon a price, have an attorney or title company prepare the documents.  If you do it yourself and make mistakes, your lien may not be enforceable.


When everything is done and you have begun receiving payments, consider whether you want to sell your Arkansas land contract.  By doing so, you don’t have to worry about tracking down your buyer to make on-time payments, you will not have to hassle with ensuring that property taxes and fire insurance are kept current, and you can be content with having cash in-hand rather than being concerned about a potential buyer default.


Selling Your Note

If you decide to sell your Arkansas note, be sure to find a note buyer that is experienced, knowledgeable, service-oriented, and having a high rating from the Better Business Bureau.  Talk to 2-3 note buyers to find the one that you feel you can trust and will give you a fair offer on your note.


Once you have chosen an excellent note buyer and agreed upon a price for your note, here are the most common steps:

  1. The note buyer will check the buyer’s credit to ensure that it is satisfactory.
  2. He or she will send you an agreement with everything in writing, and ask you to send over copies of certain documents.
  3. Next, the note buyer will order a drive-by appraisal, usually at their own expense.  This takes a week or more.
  4. Following that, they will order a title commitment from the title company.  This also takes at least a week and is paid for by them.
  5. At the conclusion of the above due diligence, the note buying company will send you documents to take assignment of your note.  You will sign those and return them with your original note and mortgage.
  6. Depending on the note investor parameters, they will wire the funds to you within 1-5 business days.


Seascape Capital has been in business since 2002 and has an A+ rating from the Better Business Bureau.  Seascape has purchased or brokered numerous notes on Arkansas properties, and can be reached at 1-800-634-4697.


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To ask questions or for a pressure-free discussionCall 1-800-634-4697