Immediately, you get ten times the number of calls from potential buyers than the realtor would have received had they listed the property in the ‘traditional’ way. The traditional way would require a buyer to get bank financing, make a large down payment pay ‘origination fees’ points pay closing costs, most of which you will end up paying to make the deal happen.
|
You eat a 4-5% negotiation cost off your offer price, you pay monthly interest until you find a buyer. You net far less than what you thought going in. But it all changes with ‘Transferable Seller Financing’, so your property is now being marketed to a significantly larger pool of potential buyers at top price so you net more at closing than with a traditional sale; you also get your home sold in weeks instead of months.
|
|
|
| Within days you get an offer for your full premium asking price of $200,000 from Bob and Becky Buyer. They love your house, but only have $10,000 for the down payment. They have been turned down for a bank loan because Bob Buyer’s score is under 620 and they are being required to have $30,000 (15%) down payment plus closing costs, another $7,000 (4%).
The buyers will make a $10,000 cash down payment and ask you to create a note for the remaining $190,000. Their interest rate will be 9.9%, (our rates go down to 4.5%) and you will receive a large sum at closing from TSF (the note buyer).
Discounts on notes range from 10% to 20% depending on the credit and income of the buyer. Here is how the purchase is offered to you using a 15% note discount. |
| * TSF offers one of the lowest discounts for a note purchase and one of the highest purchase prices around on Simultaneous note closings.
* The discounting of the note amount from TSF depends on the down payment, credit, income, and several other contributing factors from the buyer and property.
|
Economic Business Articles
Offers a range of business and economics information, articles, news and advice
