WHY OWNER FINANCING?
Owner financing is on the rise with more property sellers agreeing to accept payments from buyers. There are many reasons why property sellers enter into owner financing arrangements with buyers, including the following:
- Quick sale of the property
- Monthly income from the owner financed real estate note
- No bank financing hassles (fees, delays, and strict underwriting)
- More qualified buyers
- Property is hard to finance
WHY WOULD I SELL MY REAL ESTATE NOTE?
Due to changing circumstances, some real estate note holders have concluded that they would prefer cash today. They would rather not wait for small future real estate note payments to come in each month. Here are just a few reasons why people have sold their real estate note payments for cash:
- Retirement
- Taxes
- Investment opportunity
- Expensive medical care
- Vacation
- College tuition
- Unexpected financial challenges
- Peace of mind – no more worrying if the buyer is going to make late payments or having to foreclose
- Accounting headaches, IRS regulations, paperwork hassles, and the list goes on…
HOW DO I MAINTAIN THE VALUE OF MY REAL ESTATE NOTE?
You can do the following three things to maintain the value of your real estate note:
- Keep good records and copies of the payments received.
- Obtain a copy of the property insurance policy from the buyer each year.
- Verify that the property taxes are paid when they come due (usually twice a year in most states).
This will help maintain the value of your important asset and avoid any unpleasant surprises.
DO I HAVE THE OPTION OF SELLING EITHER ALL OR A PORTION OF MY REMAINING REAL ESTATE NOTE PAYMENTS?
We can purchase either all (Full Purchase) or a portion (Partial Purchase) of your remaining real estate note payments. Selling a portion of these payments allows you to receive a lump sum of cash up front, then payments when the real estate note reverts back to you.
Some people elect to sell just enough real estate note payments to meet their cash needs today. This strategy allows them to keep some of the future real estate note payments as an investment or nest egg. Always ask for an option that meets your needs.
HOW IS THE VALUE OF MY REAL ESTATE NOTE DETERMINED?
The value of your real estate note is affected by the down payment, interest rate, payment amount, and term of the note. Other factors that affect the value of your real estate note are the buyer’s credit rating and payment history. The type, condition, and value of the property also impact your real estate note’s value.
Another consideration is the time value of money, which makes payments due now more valuable than payments due in 20 to 30 years. Due to inflation, money in your pocket today is generally worth more now, than later. All these things will be taken into consideration in determining the current value of your real estate note.
HOW WILL SELLING MY REAL ESTATE NOTE AFFECT THE PAYER?
The payer experiences no change in the way the payments are structured. The only change will be the address where the payments are mailed.
WHAT COPIES OF DOCUMENTS WILL YOU NEED?
- Promissory Note
- Deed of Trust, Mortgage, or Land Contract
- Closing Statement
- Original title insurance policy
- Buyer information – name, address, and social security number
- Pay history and current balance
- Underlying notes and balances (if applicable)
- Current Proof of Insurance (hazard insurance policy)
HOW LONG DOES IT TAKE TO GET PAID?
We will provide you an offer subject to the standard title, appraisal, and buyer’s credit review. Once under contract, you will receive your money as soon as all requested documentation can be obtained. This typically takes as little as 10-15 working days.
WHY SHOULD I SELL MY REAL ESTATE NOTE TO MANNARESOURCES LCC?
We pride ourselves on:
- Quick closings
- Excellent customer service
- Competitive quotes
- Providing customized options
- Strong financial backing
- Flexibility on all note purchases
- Confidentiality with all transactions
- Credibility in the industry
HOW DO I GET STARTED?
Your next step is to complete the Real Estate Note Funding Application. Click here to get started!