The Cash Flow Clarion

Many sellers find owner financing a frightening idea. However, in reality, owner financing can provide a very safe investment if handled correctly and can provide you with a liquid asset which can be sold for cash should the need arise. Let's look first at some of the misconceptions surrounding owner financing.

You may be under the impression, as many people are, that any buyer who cannot qualify for a traditional bank loan is an unsafe risk. The truth is that lending requirements for traditional lending solutions (banks and mortgage brokers) are very rigid and many qualified buyers simply cannot qualify even if they are able to afford the payments on your home and they have an adequate down-payment. Traditional lenders tend to shy away from buyers with recent life changes, such as a divorce, a recent relocation, or a recent job change. Offering owner financing to sell your home or property will actually make it easier for buyers to purchase your home and therefore will attract a larger number of qualified buyers to your home.

The second misconception surrounding owner financing is that the seller is trapped into receiving small monthly payments for their home. This also is not true. The mortgage or trust deed that is created when you sell your home is a liquid asset that you can sell any time you need cash. By selling your home using owner financing and then selling the resulting mortgage/trust deed at closing, you can accomplish an all-cash sale of your home.

Let's now look at some of the benefits of owner financing. We've already discussed the fact that you'll attract a larger number of qualified buyers and can accomplish an all-cash deal. However, there are a number of other benefits also.

Because offering owner financing to your prospective buyers is a valuable commodity, you will be able to receive top dollar for your home or property. Unless your home is in need of major repairs, you should easily be able to collect fair market value for it.

Most properties tend to sell much more quickly with owner financing than with traditional lending solutions. Closing on a property can take place within days after a sales agreement is reached. Closing costs are also much lower, with no points or garbage fees.

Owner financing can be used to sell any type of property: single-family homes, multi-family homes, condominiums, town-houses, duplexes, apartment complexes and other types of commercial properties. Even businesses can be sold with owner financing. If your property is difficult to sell or non-conforming, owner financing may provide a much more successful method of selling. If bank funding is not available for your property, owner financing may be your only alternative to selling your home.

Tax advantages also accompany the use of owner financing when the taxable gains are extended over time.

In summary, owner financing allows a quick sale at top dollar with the opportunity for an all-cash deal when you sell your home.

First Class Cash Flow Handlers buys and sells privately held mortgages, trust deeds, and other cash flow notes. If you are selling a home, you need to know How To Sell Your Home Fast In Good Or Bad Markets. For more information, visit us at our home page or call us at 401-258-7158.

Why Would I Want To Sell My Cash Flow Note?

There are many answers to this question and the reason is likely to vary tremendously from person to person. Many times people settle for a cash flow note because they have no choice. It may have been necessary for you to take back a mortgage or trust deed in order to facilitate the sale of your home. Or you may have been forced to offer owner financing to sell your business. Either way, owner financing may have provided the key to moving the deal forward, but you may have preferred cash at the time of the sale over a cash flow note which pays you back over an extended period of time. If so, you may want to consider selling all or part of your note for cash now.

Alternatively, you may need cash to cover the cost of medical expenses, or pay off credit card debt. You may wish to take a vacation or buy a home or a car, or even a business and need money to fund this ambition. You may need money to fund a college education for yourself, your spouse or your child. You may need to fund your retirement. Or you may have the opportunity to place the money in a higher-yielding investment. Basically, any time you need cash, you can sell all or part of your cash flow note to raise that cash. Whatever the reason, your cash flow note is a good source of capital.

Another reason for electing to sell a cash flow note is to eliminate the need to worry about whether the payor is going to able to make next months payment or not. You may not want to deal with the mechanics of maintaining a cash flow note. Or you may be worried about the note defaulting. By selling the note, these concerns are alleviated.

There are many good reasons for selling a cash flow. Only you can decide whether selling is right for your individual situation. If you would like to discuss whether selling your note is your best option, please contact us here or call us at (401)-258-7158.


The Cash Flow Clarion
March 12, 2006
Why Offer Owner Financing? Many sellers find owner financing a frightening idea. However, in reality, owner financing can provide a very safe investment if handled correctly and can provide you with a liquid asset which can be sold for cash should the need arise. Let's look first at some of the misconceptions surrounding owner financing. You may be under the impression, as many people are, that any buyer who cannot qualify for a traditional bank loan is an unsafe risk. The truth is that lending requirements for traditional lending solutions (banks and mortgage brokers) are very rigid and many qualified buyers simply cannot qualify even if they are able to afford the payments on your home and they have an adequate down-payment. Traditional lenders tend to shy away from buyers with recent life changes, such as a divorce, a recent relocation, or a recent job change. Offering owner financing to sell your home or property will actually make it easier for buyers to purchase your home and therefore will attract a larger number of qualified buyers to your home. The second misconception surrounding owner financing is that the seller is trapped into receiving small monthly payments for their home. This also is not true. The mortgage or trust deed that is created when you sell your home is a liquid asset that you can sell any time you need cash. By selling your home using owner financing and then selling the resulting mortgage/trust deed at closing, you can accomplish an all-cash sale of your home. Let's now look at some of the benefits of owner financing. We've already discussed the fact that you'll attract a larger number of qualified buyers and can accomplish an all-cash deal. However, there are a number of other benefits also. Because offering owner financing to your prospective buyers is a valuable commodity, you will be able to receive top dollar for your home or property. Unless your home is in need of major repairs, you should easily be able to collect fair market value for it. Most properties tend to sell much more quickly with owner financing than with traditional lending solutions. Closing on a property can take place within days after a sales agreement is reached. Closing costs are also much lower, with no points or garbage fees. Owner financing can be used to sell any type of property: single-family homes, multi-family homes, condominiums, town-houses, duplexes, apartment complexes and other types of commercial properties. Even businesses can be sold with owner financing. If your property is difficult to sell or non-conforming, owner financing may provide a much more successful method of selling. If bank funding is not available for your property, owner financing may be your only alternative to selling your home. Tax advantages also accompany the use of owner financing when the taxable gains are extended over time. In summary, owner financing allows a quick sale at top dollar with the opportunity for an all-cash deal when you sell your home. First Class Cash Flow Handlers buys and sells privately held mortgages, trust deeds, and other cash flow notes. If you are selling a home, you need to know How To Sell Your Home Fast In Good Or Bad Markets. For more information, visit us at our home page or call us at 401-258-7158. Why Would I Want To Sell My Cash Flow Note? There are many answers to this question and the reason is likely to vary tremendously from person to person. Many times people settle for a cash flow note because they have no choice. It may have been necessary for you to take back a mortgage or trust deed in order to facilitate the sale of your home. Or you may have been forced to offer owner financing to sell your business. Either way, owner financing may have provided the key to moving the deal forward, but you may have preferred cash at the time of the sale over a cash flow note which pays you back over an extended period of time. If so, you may want to consider selling all or part of your note for cash now. Alternatively, you may need cash to cover the cost of medical expenses, or pay off credit card debt. You may wish to take a vacation or buy a home or a car, or even a business and need money to fund this ambition. You may need money to fund a college education for yourself, your spouse or your child. You may need to fund your retirement. Or you may have the opportunity to place the money in a higher-yielding investment. Basically, any time you need cash, you can sell all or part of your cash flow note to raise that cash. Whatever the reason, your cash flow note is a good source of capital. Another reason for electing to sell a cash flow note is to eliminate the need to worry about whether the payor is going to able to make next months payment or not. You may not want to deal with the mechanics of maintaining a cash flow note. Or you may be worried about the note defaulting. By selling the note, these concerns are alleviated. There are many good reasons for selling a cash flow. Only you can decide whether selling is right for your individual situation. If you would like to discuss whether selling your note is your best option, please contact us here or call us at (401)-258-7158.	In This Issue: Why Offer Owner Financing? Why Would I Want To Sell My Cash Flow Note? Important Links: The Cash Flow Clarion Home First Class Cash Flow Handlers- Home page for First Class Cash Flow Handlers Note Submission Page- Submit your cash flow note on this page if you would like to sell your note FAQ's Page- Questions relating to First Class Cash Flow products and services Note Holders Page- Information and answers to questions frequently asked by note holders Realtors Page- Information for realtors explaining how owner financing can increase sales and commissions Real Estate Professionals Page- Dedicated to attorneys, CPA's, financial consultants, mortgage brokers, and any other professional whose clientele hold cash flow notes Products Offered- 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" In Next Issue: Maintaining And Protecting Your Cash Flow Note Selling A Note Secured By Commercial Property Contact Information: First Class Cash Flow Handlers www.firstclasscashflow.com loriehuston@firstclasscashflow.com (401)-258-7158