Frequently Asked Questions:

How can First Class Cash Flow Handlers help me?  First Class Cash Flow Handlers can help you in several ways.  1).  If you are a holding a cash flow note, we will buy that note for cash.  We specialize in helping our clients solve their cash flow needs.  We can provide you with a lump sum of cash in exchange for any cash flow note.  2).  If you are selling your home, we can provide you with products and services which will allow you to sell your home quickly (using owner financing to attract buyers).  You may elect to keep the resulting cash flow note and collect monthly payments, or you may elect to sell the cash flow note and receive a lump sum of cash.  3).  If you are currently holding an owner financed mortgage or trust deed, we can provide you with educational materials to assist you in securing your investment in the mortgage or trust deed.

What is a cash flow note?  A cash flow note is a written document that states a promise to pay, and the terms of the promise, which include the amount, the interest rate and the length of time.  A cash flow note may be a mortgage, a trust deed, a deed of trust, a business note, a court award (such as a structured settlement), lottery winnings, annuities, etc.

What is owner financing?  Owner financing occurs when the seller of a property takes the place of a bank or mortgage lender and finances the buyer directly.  This results in an owner-financed mortgage or trust deed being created.  (These notes are also sometimes known as privately-held, owner carry-back, seller financed or owner take-back loans.  You may also hear the term creative financing applied to these types of transactions.  These terms all refer the same thing--a cash flow note held by a property seller and secured by the property that he/she sold.) 

Why should I consider offering owner financing if I'm selling a property?  There are many advantages to offering owner financing to sell your home.  You will be able to attract a larger number of interested buyers because there is no barrier to buying your home--a buyer does not have to qualify for a bank loan.  Most homes sell very quickly because once a qualified buyer is located, there is no need to wait for bank approval.  Closing can occur almost immediately, and closing costs are much lower than with a traditional bank loan.  By carrying-back a mortgage or trust deed, you can spread out the taxable gain over time, creating a major tax benefit.  Your mortgage or trust deed will provide you with a solid investment, secured by real estate and earning a respectable interest rate which may be as much as 4-5% more than you could earn on a money market savings account.  Your mortgage or trust deed is also a liquid asset which you can sell for cash at any time.     

If a bank or mortgage lender won't finance a buyer, why should I?  Lending requirements for loans offered through banks and mortgage lenders tend to be very rigid.  As a result, many qualified buyers find themselves ineligible for these loans.  These buyers often have good credit ratings and sizable down-payments, but may not qualify for a traditional loan because of a technicality, such as a recent divorce, relocation, job change, etc.  You will find many buyers that are able to afford your home and can put down a sizable down-payment even though they do not qualify for traditional lending solutions.  Because you will be acting as a lender, you have the right to request a credit report on any person interested in buying your home.  You will be able to judge very easily whether they are a candidate for purchasing your home by examining the credit report, and your loaning requirements do not have to be as strict as the bank or mortgage lender because you don't have to worry about federal guidelines, etc.   

I'd like to offer owner financing to help sell my home, but I need the money from the sale right away.  What can I do?  You can sell the resulting mortgage or trust deed at the same time you close on the sale of your home.  This is called a simultaneous closing.  You may elect to sell all or part of the mortgage or trust deed.  We will work with you to determine which of our many different plans will satisfy your needs.  Either way, you will receive a lump sum of cash at closing. 

What types of properties can be sold with owner financing?  Any type of property can be sold with owner financing.  In fact, many properties which are difficult or impossible to sell otherwise will sell easily with owner financing.  Single family homes, multi-family homes, town-houses, condominiums, commercial properties, land and businesses can all be sold using owner financing.  (*Please note:  Simultaneous closings may not be practical for commercial properties or business transactions.  However, you will be able to sell the note after you have received a few payments on it.)

Is this legal?  First Class Cash Flow Handlers does not condone any illegal activities.  Owner financing is completely legal in all states.  In fact, it is currently estimated that approximately 20% (one in five) of all real estate transactions involve owner financing.

Do I need a lawyer?  Yes, absolutely.  You should never attempt to sell real estate without the advice of a competent real estate attorney. 

Will I need a realtor to sell my home?  While hiring a real estate professional to help you sell your home does has some advantages, it is not required to work with a real estate agent or broker when you use owner financing.  You can use owner financing to sell your home with or without the aid of a real estate agent or broker.

I'm confused by some of terms used.  How can I find out what these words mean?  For your convenience, we have included a glossary on our website.

Where can I get more information about selling my cash flow note or using owner financing?  For additional information about selling a cash flow note, please see our "Noteholders" page or call us at (401)-258-7158.  For more information about using owner financing to sell your home, we recommend "How To Sell Your Home Fast In Good Or Bad Markets".  You'll also find resources designed to help you create, maintain and secure your mortgage or trust deed on our "Products" page. 

Home page for First Class Cash Flow Handlers

 

Submit your cash flow note on this page if you would like to sell your note

 

Questions relating to First Class Cash Flow products and services

 

financial consultants, mortgage brokers, and any other professional whose clientele hold cash flow notes

 

Information about specialized products such as "How To Sell Your Home Fast In Good

Or Bad Markets" training course, the "Note Holders Manual", the "Cash For Paper" audio course, and the "Update On Real Estate

Newsletter"