Did you know....

       When you have finished presenting your price options and your note holder is on the fence and can't quite make up his mind, nudge him by saying something like this: "Let's face it... you like it; you want it; and you need it.  Let's go ahead and get started... okay?"

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President's Corner

       In today's challenging note market environment, every note holder should expect to hold their note for a while before trying to sell it if they did not receive a good down payment when they sold their property.  Although we have seen emerging signs of an economic recovery, the secondary market for buying and selling individually held seller financed notes is still challenging for most, if not all note buyers.  As a result, most note buyers still need help in getting comfortable with the notes they are looking at purchasing and do prefer that the payor’s have some level of "skin in the game."  For the past few years, it's been very rare to see a closed transaction go through without some level of down payment.  For your note holder, this means they should expect to receive a better pricing from note holders depending upon the amount of the down payment they received when they sold their property.  Beyond increasing the likelihood of a sale and maximizing the value of their note they also have the benefit of holding a more secure note. Helping your note holders understand this (as well as other factors) and the implications of little to no down versus a good down payment are key to setting realistic expectations from the beginning of the process.  Remember, Success Demands Action! Keep on marketing, it’s going to work! TWITA!

Question of the Week

Q - Hi Jeff,

          I hope you are doing well. I touched base with you a short while back to thank you for the awesome job you've done with these Renatus classes on note brokering and seller financing.  Thanks for answering my previous questions as well.  I am actually doing my first deal and I want to make sure that I structure it right.  I currently have it listed at $259,000. That is close to the sales price where I would like to be with the seller financing.  Oh, and I have a mortgage on the property of $230,000 already.  What are the key things I need to be aware of when structuring the note again? Thanks for everything!  

                                                                                       ~ Carl

A - Hi Brian!

          Thanks for the email. I will try to keep it short. Okay here is the suggestion:

As far as selling the note, well this won't happen anytime soon because when we buy a note with an underlying mortgage we need to pay the underlying off when we buy it. If we were to buy this note we MIGHT pay about $200,000 BUT we need to pay off the underlying note of $230,000 SO essentially if you wanted to sell the $233,100 note you would have to put in about $30,000!!! Hope this helps! TWITA!                                                                                          ~ Jeff

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