3 Reasons Creating and Selling a Private Mortgage Note Makes Sense
Released on = April 3, 2006, 8:23 pm
Press Release Author = Divergent Capital Group
Industry = Real Estate
Press Release Summary = Owner financing has become an established and accepted practice in real estate. And because of the private mortgage industry, owner financing is an even more attractive option than it once was in the past
Press Release Body = FOR IMMEDIATE RELEASE 4/6/2006
3 Reasons Creating and Selling a Private Mortgage Note Makes Sense
Owner financing has become an established and accepted practice in real estate. And because of the private mortgage industry, owner financing is an even more attractive option than it once was in the past.
Dallas, TX - 4/6/2006 - Private mortgage notes, also referred to as owner financed mortgage notes, have become more prevalent because they offer three distinct advantages. Conversely, as the situation changes there are three very powerful reason to sell a note.
There are three primary reason that a private mortgage note is established:
1. The buyer was not able to obtain traditional financing.
A little more than half of all applicants, and the numbers is going up, do not qualify for the full amount of the loan that they seek.
2. The owner wants to save time and money.
Utilizing owner financing the owner and buyer can save on the extraneous fees associated with the closing, such as origination fees, closing cost and survey fees.
3. An investment opportunity for the seller.
Depending on the sellers circumstances, it may make sense to self-finance for tax purposes.
After the note has seasoned the seller\'s motives may have changed, resulting in the desire to sell the note. For whatever reason, the seller may want to sell the note for a lump-sum payment. This is very common and these types of transactions occur daily.
Transaction like these are available for residential notes, business notes and vacant land notes. But not all funding sources support all three. One can visit www.divergentgroup.com to find more information about selling a private mortgage note.
The benefits of selling a private mortgage note are numerous but the top three are:
1. It provides immediate cash; 2. The seller no longer has to collect payments on the note; 3. The seller no longer has the risk of non-payment.
Divergent Capital Group represents over 200 institutional investors that purchase private mortgage notes for immediate cash. This creates competition, allowing the most competitive deals available. Visit www.divergentgroup.com for more information.
Greg Meares is the principal of Divergent Capital Group and a certified cash flow consultant. Helping others achieve their goals, get out of an adverse financial situation or just trade in payments for a lump-sum is good business. Divergent Capital Group facilitates (no cost to you) the best deal for your situation. Over 200 funding groups are utilized and they compete for your business. Other helpful information regarding private mortgage notes can be found at: http://www.divergentgroup.com
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