As a general rule for best value of the Note, we recommend the following basic guidelines in structuring and creating your loan/Note. The guidelines are NOT REQUIREMENTS, however, if you decide to sell with less downpayment than recommended, or with lower interest rate than recommended, or without the recommended documents, or to someone with truly bad credit, you won’t be able to sell your note later at the best pricing. And, in some cases, other buyers won’t even consider your note — although Nationwide Secured Capital Buys More Loans, and can provide cash out from almost any loan you make — the amount of the loan you can sell may be limited.
***STEP 1) For a Note of maximum value, Consult with the guidelines in Part 5 of this Article on how to structure the Seller Financing for the property you are selling.
***STEP 2) Offer and market your property for sale with Seller Financing (owner financing), and with the parameters listed above – at full market price.
- Check recent sales in your area and current listings through a realtor. If other sellers have had to drop their price to sell – you do not have to – you can sell at full market price because you are offering Seller Financing to a buyer who does not qualify for a bank loan, and who needs the property. You can even set a slightly higher price – the only limitation is that the house must appraise at or near the sale price you set.
- You may want to go ahead and order a 1004 appraisal from a licensed appraiser in advance of marketing the house to help you set the price – and it will greatly aid receiving a firm purchase commitment on your Note
***STEP 3) Find a Buyer. Sign a standard real estate purchase contract with Seller Financing, and be sure that the Seller Financing clause of your contract includes the phrase “financing terms subject to credit review and approval”. This will allow you to set the offered financing terms based on the sellers qualifications or even allow you to exit the contract, if the buyer’s credit does not measure up as a reasonable risk to make the loan .
***STEP 4) Immediately have the Buyer(s) fill out & sign the following forms (available through the NSC website, email consult@NationwideSecuredCapital.com for the link):
- Standard 1003 Loan Application
- Authorization to Release Credit
***STEP 4) Work with a Note investment firm like Nationwide Secured Capital who will review and make an offer for the loan, with suggestions on how you can maximize value of the loan – See Part 4 following. You may also want to consult a License Mortgage Originator to obtain credit and qualify your buyer according to new Federal Laws for creation of private mortgages.
Related Articles
http://nationwidesecuredcapital.com/Sell-My-Note/seller-financing/
http://nationwidesecuredcapital.com/Sell-My-Note/the-process-of-selling-your-property-creating-a-note/
http://nationwidesecuredcapital.com/Sell-My-Note/how-to-sell-a-note-cash-today-versus-cash-in-the-future/
http://nationwidesecuredcapital.com/Sell-My-Note/how-to-structure-a-note-for-maximum-value/
