Banks and mortgage companies have been selling mortgage notes in the secondary for years. They even buy and sell those notes to other lending companies. This most likely has happen to you or to someone that you know at some time or another. Why do lenders do this? They do it in order to keep a steady reserve of cash on hand to make other loans.
The information in this message is designed to help you understand about creating trust deeds, real estate notes, or if you have a business and have contracts you also have a business note which will bring you a cash flow that you can receive monthly payments, which brings you steady cash flows. You can also have the option to sell whole or part your real estate notes, trust deeds or business notes. The whole idea here is to first elevate your potential of meeting a home buyer to sell your home to.
Time and time again you might find houses that are for sale but are on the market for a very long time. Most of the time home buyers don’t qualify for a 100% loan and must get 2 loans to equal the 100%. The home seller can offer “Seller Financing” in order to get the house sold.
The home seller has one objective and this to sell that property as quickly as possible. To do this you can create a trust deed which is secured by real estate. This is a real estate note. The real estate note has several purposes and the most important reason is to help the home seller close on the house.
The trust deed that you now have is because you agreed to finance the home buyer so that the buyer could get the house and you can your cash at closing.
Not only do you have cash at closing but you now have a real estate note that you will be receiving monthly payments on from the new home owner. Your home is sold and you have residual income from the trust deed you created. This creates steady cash flows from the trust deeds, real estate notes or business notes you may have. This is what “Seller Financing” is. This occurs when the buyer makes regular monthly payments to you instead of the bank. You now hold an asset that you can choose to keep for steady cash flow or sell part or all of it for cash right now.
This should motivate any home seller to give this a try, after all what could it hurt and it will be a win/win situation for the home seller, as well as for the home buyer. “Owner-Financing” is widely accepted and is an alternative for the home buyer who can’t qualify for a conventional loan. Even if you have real estate notes, business notes or trust deeds for a while you can generate cash flows by selling all or part of it for cash now.
Isn’t that great news for the home seller? This will give the home seller a boost in getting the house sold. Most people would consider buying that house if the they knew that the home seller was willing to create a real estate note or trust deeds to secure the home buyer qualifying for the house. Just envision selling your home much faster then your neighbor down the street because you possess the key to selling your home. “Owner Financing”.
You also have created cash flows created from your real estate notes, trust deeds, or business notes and that can be the key to your financial future.
Gordon Pate is a 5th generation resident of Bryan-College Station, his extensive knowledge of the area and its culture helps you get acquainted with Bryan-College Station Real Estate. He offers various homes for sale college station properties that satisfy what you need and what you want.
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