One joy of living in America is that every state is unique in so many ways. Whether it be size, culture, terrain, or even dialect, each state has much to offer. General beliefs and laws help to hold it all together.
While real estate can also differ among states and cities, there are some common laws and practices that are quite similar. For instance, owner financing of a house or commercial property is available and done in all 50 states. A real estate note is created with an owner-financed transaction, and selling a note to a mortgage note buyer can provide a lump sum of cash without waiting years to get paid.
Note buying companies look at certain types of information on each note to determine risk and pricing. These include:
- The type of property, as well as its location and condition
- Equity in the property, as determined by the amount of down payment and the note’s seasoning
- Credit history and credit score of the buyer
SETTING UP YE OLDE NOTE
Before selling your property and creating a mortgage note, it is helpful to plan ahead in order to make your note both secure and more marketable. Here are some guidelines:
- Sell to a buyer with good credit to reduce the chance of default, as well as make your note more valuable.
- Collect at least a 10% down payment for houses and 20% for other property types.
- Have a title company or attorney prepare the transaction documents to help avoid later troubles.
- Sell at a price that is close to the property’s true value.
SELLING A NOTE
Now that you have sold the property and collected a few payments, you have a decision to make. You could keep the note, but that means that you need to track the payments, always be sure that the insurance and taxes are kept current, and deal with all of the other issues that can arise over a period of years. Alternatively, you could sell a note to a real estate note buyer. When choosing the company to whom you want to sell your note, be sure that:
- The company or individual is licensed as a real estate broker in their home state
- They have a high rating from the Better Business Bureau
- The company has been in business for at least five years and seems to know what they are talking about.
- There is no “dirt” on the company when you do a search on Google or Bing.
- Your gut tells you that the note buyer is trustworthy.
Seascape Capital has been in business since 2002, and is widely recognized and respected throughout the note buying industry. Seascape has an A+ rating from the Better Business Bureau and is fully licensed.
