Owner Financing- Notes

[Marque Toliver]

Hi BiggerPockets Community,

Recently a family member approached me about selling a property note for a property that he owner financed a few months back. I have never done that before, I am a Realtor and was hoping that my broker could assist me in the transaction. Unfortunately, he could not provide me with much information because he haven't done too many of them himself. I do have the following questions, but please feel free to add any information that you feel is important. Any help would be greatly appreciated.

1. How do I calculate what the price point should be to sell?

2. Best place to sell notes?

3. How does selling notes differ from other transactions?

4. What materials are needed in the transaction?

5. What are the things I should pay close attention to doing the transaction?

[Chris Eaker]

I'm sure there are alot of forum posts about selling notes in here, so be sure to search the forums. Here are my (uneducated) responses, so be sure to get full answers from pros.

1. I think it should be based on what return the buyer wants. You could set an initial price based on something, but it will be negotiated. Maybe start at a 15% return for an investor and go from there.

2. The BP marketplace is a good place. Ask around your area from local real estate investors. I might even be interested for the right price.

3. You'd have to get an attorney/title company involved, but it shouldn't be as involved as a real estate closing since no deed is changing hands.

4. I'm not 100% sure of the question, but there should be some sort of contract and an assignment of note contract, but aside from that, I'd let more experienced not buyers/sellers answer that one.

5. Again, not sure, so I'll leave that one up to the pros. I would like to know the answer myself. 

Good luck!