Temporary Seller Financing (i.e. selling the note at closing)

General Real Estate Investing
1

Anybody done this? What company are you using? And how many discount points do they charge you?

I’m marketing houses now using this as an exit strategy. I was looking to use weprovidethecash.com http://www.weprovidethecash.com/sellersitebiz.php?id=NULL but it would be nice to find a buyer that doesn’t charge 10 discount points.

2

Nice plug, Archie. That website is for a pyramiding program.

3

EEK but uuhhhhh no. I have no affiliation whatsoever with that company and have never done business with them. They just happen to be the company I plan to use if and when I find a buyer for one of my properties. I accidentally put their business opportunity link up. I should have put http://www.weprovidethecash.com/sellersitebiz.php?id=NULL. I didn’t even know they marketed using a pyramid. My mistake.

I only posted a link just to show who I plan to use but really to see if anyone else is using a better (cheaper) company. I surely wouldn’t plug my own business then complain about how expensive they are in the very next sentence. :eek2

4

I am familiar with that program. Be sure to have your buyer prequalified through them and allow them to dictate the terms. Otherwise they will not purchase the note at closing. Then you will be forced to season the note. Then their service will be no different than any other note buyer. Also consider checking with other note buyers. There are note companies who will also buy the note at closing. Call around and find out terms. They are not doing anything dramatically different than other note companies.

5

This many named program was started by guru John Alexander. The benefits of this program were great in the begining but now are similar to every other note investors. One company that still does simultaneous closings is Sunvestinc.com Be forewarned though that the secondary market buys at greater discounts than previous years.
Herbster

6

You got THAT right! I just got a quote from a note buyer that requires 20% down and a 660+ FICO. :eek

7

So the note buying companies are taking more than a 15% discount as advertised?

8

I’m finding that it varies from company to company, similar to mortgage lenders…different companies, different guidelines…but just like mortgage lenders are tightening guidelines, overall the note buyers’ guidelines seem to be following suit.