Why a Mortgage Note Buyer is Ideal in Today's Economy
Why a Mortgage Note Buyer is Ideal in Today's Economy
Many home owners or those with investment properties have found that selling their property is virtually impossible in today's economy. With so many banks absolutely refusing to make loans, or making it so hard that people are choosing to rent rather than buy, you may find that there just isn't a qualified buyer ready to buy your property. You can, however, choose to finance them yourself and then sell the note to a mortgage note buyer.
The advantages of financing the note are many. First of all, you will attract buyers who otherwise would not qualify for a mortgage. When you finance them, you also are allowed to take back the property should they fail to pay you. Finally, by financing them, you eliminate the mortgage company from the equation and you will see a lot more money. The cash flow on a property that is owner-financed can be incredible.
However, some people find that after they have financed the buyer, they want to sell the mortgage and move on. A mortgage note buyer can help you by paying you a lump sum for the mortgage. So, instead of receiving cash flow for the thirty year mortgage, you can cash it out and put that money to immediate work.
The use of a mortgage note buyer for seller-financed properties is becoming more common these days and until banks loosen up their coffers, it will continue to be that way. If you are interested in selling your property faster, then financing it yourself is the way to go. You will then have the option of holding on to the note until it is paid off, or selling it immediately for instant equity. The company that buys the note then becomes the financier and you are free to invest your profits elsewhere.