Note Purchasing
Can anyone tell me how much of a discount i can expect to give when selling an owner financed property. I have a property that has an appraisal of $120K that is almost complete, but think i could sell it alot quicker by offering owner financing. I am not real familiar with how this works, so any input on this would be great.
Thanks
Ronald,
A property sold with owner financing would often be sold at a premium not at a discount, since it can be marketed to buyers that may not qualify for institutional financing.
I understand that the amount of the initial sale is at a premium, but what i am looking to do is sell the note to a company that purchases notes. What i am wondering is how much of a discount do most note buyers look to get? If i sold a property on a contract for $94900 with $5K Down leaving a balance on the note of $89,900 and sought out a note buyer, How much would they purchase the note for? 80% - 90%? I am just trying to get an idea if its something I want to look into.
This greatly depends on the terms of the note and the equity in the property.
probably buyers credit also...
It seems like you are soliciting business on every real estate forum known to earth from a quick google search.
Nate thank you. The info helped alot. I have 3 properties that this type of financing could work with.
Ron
I too, would like to know how seller financing could work for my situation on a property I bought a few months agao with 100% financing. With little equity, is seller financing even an oppurtunity for me or must I wait till it appreciates higher?
Want I want to do is sell as a lease option to buy after 3 years since their is a 3 yr PPP.
That is correct, a loan to an LLC is a commercial loan. That is why most mortgage lenders do not allow loans in the name of an LLC. Loans that conform to Fannie Mae and Freddie Mac guidelines must be in the name of a natural person, not a business entity.
Most lenders that will loan to an LLC are not mortgage bankers, but are savings banks, S&Ls or commercial banks.