All Forum Posts by: Ian MacIntyre

Bought a handful once, a couple that worked out and a few that didn't (typical for seconds). Relatively transparent and quickly fixed a document issue (assignment of mortgage typo), so they're not just a sell and disappear group.

Many of the credit unions have minimum loan amounts; they will be upfront if you ask over the phone. Most common is 50k, but some will go low enough for you at a 25k minimum.

One of the best ways around this is to become your own broker; have you thought about marketing to seller finance note holders? It's where I began out here in TX and directly led to note purchases and close business relationships.

Daniel- You are proposing a very similar path to my own. Give a message or a call sometime to discuss, if you wish...i can describe how I do this in TX.

Is this also in Washington? They have incredibly strict laws on lenders, so be sure to check around with those familiar to that state. Generalities from someone like myself (in TX) will not cut it.

Regardless of tax benefits, legalities, or the like....it just makes you more professional to form. You can access, purchase, sell, discuss much differently as a Corp than as an individual, even if you have the same cash in both scenarios. This is all about relationships and professionalism, don't cut those short.

Adam- Talk with Dave Putz, he's in Jersey and good folk.

Not only is Dion's post incredibly thorough, but it adds credence to the fact that you are considering favorable structure to your prospective note. Part of their application for a loan (which is what this is) should include a hard credit pull. That exact number will give you an idea (in addition to his debt to income ratio) of how easy/difficult it would be to resell the note. Large funds such as McKinley or FNAC have strict underwriting criteria that cuts off purchase eligibility at a certain number; private investors will be more flexible (but harder to fund or find).

Also, make sure that it is written by a professional in the field. 

Money and family can get ugly.

To answer Daniel's reply, money now is worth more than money later. Every 10K drop in sale price is better for you and worse for him due to inflation and risk of nonpayment. The clause mentioned is a prepayment penalty, where an extra percentage is paid to make up for it. 

BTW, any of the scenarios above are very generous to the buyer in the seller finance field. For the seller to create such an offer for you would require high quality creditworthiness...

To Josh, if you wish for standard mortgage terms and are 50K apart in pricing, I do not foresee a deal. Why would he want to take a ~20% price cut to only get his full price over time? For him to be this motivated, he would reasonably wish to be paid all at once through cash or bank financing.

If you wish for him to take a SF deal, you'll need to be prepared to create a valuable note from his perspective. PM if you wish and I can send over some general guidelines to help protect his investment and perhaps get you closer to a reasonable deal.