How it works:
In a typical owner-financed transaction, the buyer and seller agree on key terms like the purchase price, down payment, interest rate, loan duration, and repayment schedule.
Promissory Note:
The buyer signs a promissory note. This is a legal document outlining the loan terms. The seller typically retains the property title until the buyer fulfills the loan obligations.
Flexibility:
Owner financing can be more flexible than traditional mortgages. These mortgages potentially lower down payments, have fewer closing costs, and more lenient credit requirements.
Benefits for Buyers:
Owner financing can be beneficial for buyers who may not qualify for a traditional mortgage. Also for buyers who prefer a faster, more streamlined transaction.
Benefits for Sellers:
Sellers can generate income through interest payments, potentially sell the note to an investor later, and also benefit from a quicker sale.
Risks:
Sellers need to be aware of potential risks like the buyer defaulting on payments, which could lead to foreclosure and needing to manage the property again, according to Investopedia. Buyers need to ensure the terms are favorable and that they can manage the repayment obligations
First Capital are recognized nationwide note buyers that purchase privately held, owner-financed mortgage notes, or real estate backed
promissory notes and pride ourselves on our ability to provide you with a “top dollar” purchase offer. We purchase private loans ranging from as small as $50,000 to as large as $3,000,000 and more. If you have an owner financed mortgage note that you would like to cash out of now, give us a call at
(800) 497-7701 today or
contact us through our contact page and request our informative Note Holders Handbook. It’s FREE from First Capital.
