Is there an easy way to sell a house?

If you are looking for an easy way to sell your home fast and able to make money out of the sale transaction in a declining real estate market, then wise up and do something smart. The days of buy and sell homes to flip then sell them as renewed properties are over. Today, the latest fad that home owners do to make money out of their real estate sale is by the use of another method — private mortgage notes.

Define Private mortgage notes 

Private mortgage notes are usually referred to as owner financed notes. This is an option that is available only when an owner offers financing of the house being sole, or a mortgage note to its prospective buyer. Generally, a private mortgage note are very attractive to buyers because:

* Some buyers are not able to get approval from traditional loans from banks;

* Home owners wanted to quickly rid and sell their home without discounting their price.

How Does a Private Mortgage Note Sale Works?

Private mortgage notes lets the buyer to purchase the home directly from the owner and make payments to them as well. This totally gives the seller of the property an option to keep their selling price high, without discount, and also to set their own interest rate. Private mortgage notes will provide the seller a steady income on a monthly basis and a potential to realize hundreds of thousands of dollars in profit from the sale of their property.

What do Sellers Get Upon Sale of their Private Notes?

As a seller and home owner, you will get a great potential for income after selling your home through owner financing. However, there are cases that sometimes, people need to get out of their financing arrangements as fast as they could. Sellers may consider looking to sell private mortgage notes if you need to get the cash out from the sale of your home. Some sellers do chose to sell private mortgage notes since it will relieve them of the task of payment collection from the new owner, and it also removes you the risk from non-payment. It is a fact that sometimes, even good payers get problems every now and then.

Finding a Mortgage Note Buyer

If you are interested in getting the cash out of your home, or simply just not want to manage the repayment process, it is best that you find a mortgage note buyer. There are a lot of mortgage note buyers that are very interested in purchasing private mortgage notes. These mortgage note buyers are usually on the look to the same opportunity for income that you find attractive. Once you decide to sell your private mortgage notes, it will not be very difficult to find them and other mortgage note buyers. This type of business opportunity has been considered a good transaction over the years.

Evaluating Your Options

In today’s volatile economy, most of the mortgage note holders are seriously evaluating their options whether to sell their mortgage notes or not. It might be common these days to see a sign that reads “mortgage notes for sale,” however, since this is all about money and business, things can happen and could get very tricky.  Here is a commonly asked question.

“My understanding is the federal government is going to be offering financing to private equity and hedge funds to buy up the bad debt aka defaulted mortgages.”

How to Buy Mortgages from Banks?

Here are the Four Buckets. The competition is likely to add to the deal source for buying mortgages from banks.

There are 4 buckets in the note buying industry:

1. a) Big boys – buying $100M and above
2. b) Mid boys – buying $20-100M
3. c) Small boys – buying $1-20M
4. d) Mom and pops – buying How to Buy Mortgages From Banks, Defining Your Deal Sources

How Does the Note Buying Works?

If you belong to the Mom and Pop or the Small boy bucket, the Mid and Big boys are now deal sources to buy notes for you. This is simply put that the people who belong to the Mom and Pop or the Small boy buckets are likely to be getting mortgage notes unless the first two, Big and Mid boys have crumbs left for them to catch.

They are looking for a big IRR or Internal rate of return and they are obviously buying much more competitively compared to the small boys and the mom and pops buckets.

How to Find Notes to Buy?

View them as a note buying deal source, partner up with them, come up with some transparent Cost plus 5 type of approach where you give them 5 points in exchange for cherry-picking their portfolio and piggy-backing off their due diligence, these are the practical reasons why they will be interested in selling notes to you.

What to Do to Get Notes to Buy?

So if you feel worried about the drip from the faucet is being intercepted in some way, try to shift yourself a little so that you will be able to catch the drips from the guy who just got in front of you. And you can always go look for another faucet to buy mortgages, or those so called non-performing notes.

Non-Performing Notes

This will make sure that the Mid and Big boys are NOT out there building relationships with the 8,000+ FDIC insured banks. Even at this very moment, those 8,000 have a few non-performing notes in their portfolios!

The opportunity of buying mortgage notes is all out there for people who choose to see and act on the buying notes opportunity. Nevertheless, competition is always very steep. Keep a watchful eye and be alert all the time.