You get more for your note:
If the term is shorter. Longer notes (30 yr) are discounted more than shorter notes (15 or 20 yr notes). If the note contains a balloon payment. If the note has a higher interest rate. If the buyer has a satisfactory credit rating. If the buyer has greater than 20% equity. If the property is a house occupied by the buyer.Notes get discounted a bit more if any of the above items are different.
Land contracts have a higher discount than notes on improved property.
Mobile homes are discounted more than custom homes.
Notes on questionable buyer credit or questionable dwellings are usually quoted as partials.
Why Sell Your Contract?
You no longer have to:
Steps to Receive Your CASH.
We will buy part of the payments.
Partials:
Advantage:
Split Payment:
Here is an example of a sale.
- You sold a house for $100,000 and took $20,000 down. You created a contract with the buyer for $80,000 at 9% interest for 15 years.
Immediate lump sum of cash
Get on with the goals of your family
Move on to new investments
Buy more real estate
Start a business
Purchasing power of your money is greater now
- Keep original contract documents safe
- Collect payments
- Worry about default and foreclosure
- Fret over bankruptcies of buyers
- Stress over complications from death and divorce
Submit a request HERE with as much information as possible. Call or e-mail us if you have questions.
If you do not have information at your immediate disposal, simply call the escrow company that collects the payments and authorize them to fax us your file. (Copy of contract or note, pay history, closing settlement statement, etc.)
If you choose to pursue the sale, we will need copies of all documents in order to proceed. (All of the above plus proof of fire insurance on dwelling.)
We run a credit check on the buyer. (We will need the buyer's address, a previous address, and Social Security Number.)
We give you an opportunity to sign a Mortgage Purchase Agreement, which legally binds the process.
Our underwriters look at the transaction and decide if there is a need for an appraisal.
Closing documents are sent to you with a return receipt.
Once those documents are signed and returned and recorded with the County Auditor, the transaction is funded.
- A partial purchase is the purchase of the next 60, 80, or 100 payments depending on the need you have for cash. After 60 payments have been made, you get the note back and continue to receive the payments.
- You can get up to 100% or more of the current back by the end of the note payout. The only money you give up is part of the interest.
- Suppose your note balance is $80,000 and you only need $30,000 cash. Split payments are a type of partial purchase in which we pay a lump sum of cash for 1/3, 1/2, 3/4 of each monthly payment. You get cash and part of the payment, too.
- You didn't need all the cash at the time of the sale, but now 1 year later you could use it to buy a new piece of investment real estate, perhaps a rental. You can have the cash NOW!
- You have received 12 payments of $805.37 or $9,664.48.
- The present balance of your contract is $77,355.73.
- We could pay approximately $70,000 cash for the $77,355.73 balance.
- You would receive very nearly 100% of the original contract amount in cash 1 year after the sale.
Remember that this is only an example and is based on satisfactory buyer credit and pay history.
