Monday, November 17, 2008

Note Deal Newsletter

Seller-financed Real Estate?


Trust deeds, mortgages, business notes, security agreements, land contracts, etc. has turned into a trillion dollar industry. Buying & selling "paper" where an asset is pledged as the primary security should the buyer become delinquent then default was once limited because there were no structured channels for the sellers to get lump sums of cash for their future/potential income.

The history of the seller-financed real estate industry can be found in transactions where the seller would assist the buyer in the purchasing of the sellers property. The seller would then agree to accept delayed installment payments for all or a portion of the purchase price being paid for the real estate with the property being pledged as security for the note.

Although business trends, have changed in this industry, for many years sellers didn't have a whole bunch of options due to the small market for selling the "paper" or the note. Even with today's economy, finding estate investors who buy and sell "paper" is undemanding and actually exitement for most financier's.

Each year, approximately 4.1 billion dollars in new residential seller-financed real estate note transactions takes place in the US alone. Those who buy these type of notes should focus on notes that are seasoned, (12 months or older) which is the biggest part of this particular market. Seller-financed real estate has been around since home ownership. The difference in newly created seller-financed notes and and the overall market on an annual basis is a whopping 96 billion dollar industry.









Sellers That Want Or Need Cash Now


Do you have any future income and a note you would like to collect a lump sum of cash for? Although seller-financed real estate notes are a matter of public record in the county courthouse, there's over 50 types of cashflow notes and it would take over 200 years to find them all. There are enough notes to go around and make money for every generation. This dysfunctional market place has not only provided private investors and homeowners with a niche, but corporate investors have been using this method in order to add to their bottom line for centuries.

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