Market for Owner Financed Mortgage Notes

[Michael Perez]

Hi all. I’m researching the market for owner financed mortgage notes. I found some stats that broke down by state the number of notes created in 2017. What jumped out at me were the numbers in TX, FL, and CA relative to any other state. And TX dwarfed all others with over 17,000 in 2017. (CA and FL were about 9,000 each.) By comparison, 24 states created less than 1,000 each. (Sorry, I haven’t found more recent figures.) Assuming the relative scale of activity across states is the same in 2018 and 2019, I’m wondering why there are so many notes being created in these 3 states, especially TX? Is it simply a function of these being the 3 most populous states, or are there other local market factors that I’m not aware of?