Essential Asset Management

Today, owner financing has become an established and accepted practice in real estate. And because of the private mortgage industry, owner financing is an even more attractive option than it once was in the past.  Additionally, sales of businesses, commercial equipment, and even collectibles often benefit from the use of private financing.

We have programs that can fit just about any need – whether you’ve already sold your property and are holding a note now, or you’re about to put your property on the market and are looking for ways to enhance its salability.  Our nationwide network of note buyers and mortgage investors stands ready to assist you in converting your private mortgage note (or any other type of privately-held note) into immediate cash.  To find out more, just click on the links below or scroll down:

• What is a privately-held note?
• What types of collateral can secure a privately-held note?
• Why would I want to sell my note?
• What are my options for converting my note into cash?
• Why would I want to offer the opportunity to finance the sale of my property with a private note?

What is a privately-held note?

• A debt instrument created in conjunction with the sale of property, in which the seller finances the transaction – also known as “owner financing,” “seller financing,” or “carry back financing”
• The legal and conveyable evidence of the debt that the buyer incurs as part of the purchase, which can be bought and sold on the secondary market for owner financed notes
• A pledge of the property as security to ensure the repayment of that debt, in the form of:
  • Real estate notes / real estate trust deeds – secured by real property such as residential, business, commercial, or agricultural
  • Business notes – secured by an operating business venture
  • Promissory notes – secured by other substantial collateral (see next section)
• A specification of the repayment terms, such as interest rate, schedule, etc.
• Held by the seller of the property, or other party to whom it was subsequently assigned

What types of collateral can secure a privately-held note?

• Fixed assets such as residential or commercial real estate, or vacant land
• Intangible property such as a business
• Non-fixed physical assets such as mobile homes, yachts, big-rig trucks, or commercial equipment
• Big-ticket collectible property such as jewelry and art

Why would I want to sell my note?

• It provides immediate cash
• You no longer have to collect payments on the note, or worry about the risk of non-payment
• You can use the cash to:
  • Pay off debts
  • Travel
  • Invest in other opportunities
  • Cover college expenses
  • Fund major purchases
• Cash today is worth more than cash tomorrow:
  • Inflation and the rising cost of living steadily reduce the value of money over time
  • Fluctuations in interest rates affect the future value of today's money
  • Worldwide geopolitical events potentially have strong influences on the future value of money

What are my options for converting my note into cash?

• Sell the entire note for a lump-sum of cash now
• Sell some of the payments you receive for cash now, preserving the remainder of the payments at the appropriate date
• Sell only a portion of each payment for cash now, maintaining a continuing income stream from the remaining share of each payment
• Sell the deferred balloon payment (if applicable) for cash now, retaining the entire current income stream

Why would I want to offer the opportunity to finance the sale of my property with a private note?

• Expand your pool of qualified buyers, enabling those who may be turned down by traditional financing to bid on your property
• Increase your sales price (or avoid decreasing it to move your property in a slow market), because strict traditional financing approval limitations are eliminated
• Save time and sell quicker, by potentially eliminating appraisals, surveys, or prolonged loan qualifications
• Save money, by avoiding some closing costs and other fees
• Most importantly, you don’t have to wait to sell your note – if you prefer, it can be done at the time of the sale of the property by using a simultaneous closing or table funding