People who are selling their homes and offer mortgage notes as seller financing to buyers can sell their homes at a higher price and more quickly in a slow market. Those who are looking to buy from someone offering owner financing are also different from those looking at the typical bank or lender financing.

The other difference is that the down payment a seller would require may be either larger or smaller than what a bank or lender would require. Usually the property owner that is utilizing seller financing has an immediate need for cash that may be available. This need is usually because the owners are looking to purchase another piece of real estate and needs the money for a down payment themselves.

Once the deal has been finalized, the seller has the option of selling the real estate note to obtain a lump sum of cash. This will allow the seller to have cash in hand for a down payment or any other financial need when they locate someone who is willing to buy the note.

The best place to look for someone who may be interested in buying your real estate notes is the Internet. Those who buy cash flow notes will not usually advertise in your local classified section of the newspaper. You can easily Google the keywords of “sell real estate notes” or “buy real estate notes” or “cash flow notes“.

Now, to answer the question, which is better? It all depends on what you are looking for. Do you need cash in hand right now? Do you want additional monthly income? Answer these and you will know the answer to the question.

This entry was posted on Tuesday, April 14th, 2009 at 8:05 pm and is filed under Real Estate. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.