I have had several private messages asking me how to sell mortgages. Because of this I will be adding a series of information about how you can create a note and sell a note you create.
One of the methods my partner and I use to escape properties is to create seller financed notes and we may sell them to investors.
Creating a note can be crucial to selling a note later or if you come across someone who has created or will be creating a note the note structure has to be created successfully.
Let me explain:
Investors that you will sell a note to will be discounting the note and you will want to limit how much an investor will discount the note.
Here are the items that you will want in your note. Keep in mind some of this can change so just use this as a general rule:
Interest: 2-4% above conventional interest rates unless a mobile home or land.
Get as much down payment as possible because the higher the amount of down payment to less risk to you and an investor that will purchase from you.
Pull credit. Check income. Qualify a perspective buyer / payor. If you don't a new investor will and this is a huge way to keep yourself safe.
Keep the loan terms short. If you cannot keep the terms short because of the large payment attach a balloon to the loan.
Allow a few payments called seasoning on the note before you attempt to sell.
If you follow this you can sell your notes for 90-95% of the value of the note.
I will expound more on each faction later then get into actually selling the note.
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125