We sold a property recently on a “land contract.” I understand the principles of selling a contract, but I’ve never actually sold one. We haven’t decided to sell, but want to know what we could get. Can someone with experience recommend a good place to start? Thanks,
NOTE: How are your negotiation skills? Folks will try and pay you as little as possible. Be prepared to answer the following:
-How long has the payor been making payments?
-What is the current balance owing?
-Are there canceled checks to verify payment?
-What is the payors credit?
Before you make contact make sure that you know exactly what it is you have. They will try to discount. Calculate the yield at 8% 10% 12% and 15%. If you have a solid note and solid payors offer to discount the note so that the buyer will yield 8% and workfrom there. Also, what is the term of the note? You will need to calculate and unnderstand the “time value of money”.
Hope this helps.
I’m getting out the scientific calculator. It’s been a while since I sold real estate, but I’m sure I can figure out the math with time.
Remember, it is that new math :banghead:
JUST FOR AN ADDITIONAL IDEA
You can create your note and then sell the note for money at a discount usually with a 10-20% discount if you want the money to invest in other properties and you are not interested in the passive income at this time it is a really good idea and you can find note buyers by doing searches on the internet.
Thanks for the advice and ideas. We got a quote on the note, so I have an idea what it is worth now (of course if we decide to sell we’ll shop for an even better price). Thanks again