Updated May 2017
In North Carolina, owner financing is often used to sell houses, commercial buildings, and other property types without the need for banks. When a property sale is structured this way, a mortgage note is created to show the payment terms and details. Whether or not you think that you might eventually sell the note to one of a variety of North Carolina note buying companies, consider these items when selling the property and structuring the note:
- Location, condition, and size of the property
- Dependability, character, and credit-worthiness of the buyer
- The amount of down payment that would make you feel comfortable
- How much risk you are willing to take on
HERE’S THE DEAL
All notes are different and therefore carry with them a different level of safety versus risk. A note buyer like Seascape Capital is going to want to understand in detail the property and the note. To make your note marketable and to get the highest price possible, try to do these things when creating the note:
- Get at least a 10% down payment – even more is better
- Sell to a person who is going to occupy the property and who has strong credit
- Make sure that the house is in good condition and is fully insured
- Have a title company or attorney prepare the documents in order to avoid any legal entanglements
NOW, ABOUT SELLING THAT NOTE
The transaction has been completed and the buyer has made several payments. You have decided that you would like to see your note and are wondering what happens next.
- Interview 3-4 note buyers to give them information about the note and to discover with whom you feel most comfortable.
- Once you have received offers and chosen a note buyer, that company will check the credit of the payer and ask you to send over copies of documents from the sale.
- The note buyer will pay for and take care of getting a drive-by appraisal and title policy.
- Assignment documents will be sent out, you sign them, and the money is wired to you within 1-2 business days.
From start to finish, the process generally takes a month or so to complete.
You can find more details about North Carolina real estate trends here. Seascape Capital is a nationally respected and fully licensed note buyer, with an A+ rating from the Better Business Bureau. We can purchase notes in all 50 states.