Idaho became the 43rd state in 1890, and has the deepest river gorge in North America. Hells Canyon is 7900 feet deep, even deeper than the Grand Canyon. Fortunately, Idaho real estate with houses or buildings on it is much higher in elevation, though a bit less scenic.
The vast majority of people selling real estate thinks that there are two ways of doing so – either the buyer gets a loan or pays all cash. Sometimes, a better way is to use owner financing and have the selling individuals carry a deed of trust note. Like anything else, there right ways and wrong ways to set up a note. A few important guidelines are:
- Have an attorney or title company create the documents for you to make sure that they are done properly.
- Be sure that your buyer has enough money to put in a down payment of at least 10% and pay their share of the closing costs.
- To save yourself a lot of later grief, sell to a person who you feel confident will make the payments and who has a good credit score.
SELLING TO AN IDAHO NOTE INVESTOR
Once you have sold your property using owner financing, you have a couple of choices on what to do with the deed of trust note. First, you could hold on to the note and collect the payments, though you need to be aware of the risk of non-payment and other issues. Second, you could decide to contact an Idaho note investor to gauge the value of your note and to understand your options. To make sure that you have reached a good note buyer, be sure that they are experienced and competent, service-oriented, and have an A+ rating from the Better Business Bureau.
THE INVESTOR PROCESS
Once you and the note investor have agreed upon a price, you can expect the next few steps to be:
- You will be asked to send over copies of all of your documents and proof of recent payments received.
- The investor will review the documents and order a drive-by appraisal.
- Once the appraisal has been received that shows the property value, the Idaho note investor will order a title commitment.
- Steps 2 and 3 can each take a week or more, after which assignment documents would be sent to you.
- You return the signed documents with the original note and deed of trust, and the investor will wire you the funds within 2-3 business days.
Seascape Capital has been in business since 2002 and participated in a number of Idaho note purchases. Seascape has an A+ rating from the Better Business Bureau and is proud to have never had a complaint lodged against it.