|
New Financing Phenomenon Gives Note Holders A Way Out
By: Wendi Lyn Jensen
Seller-financed transactions no longer mean being stuck with small monthly
payments for 30 years.
Private financing no longer needs to be “private“. An unfortunate lack of
knowledge has kept those that had to use seller (or private) financing in the
dark. They agreed to this form of financing in order to sell their property, not
realizing that they did not have to hang on to it for the full term. But, there
is a way out.
But first, we need to understand what it is we are talking about.
Seller-financed transactions help the seller get rid of their property, and
gives them a monthly cash flow income. Which is not a bad way to go, unless the
seller decides they would rather have a lump-sum of cash. In fact, most holders
of notes didn't want the note in the first place, but it did help them sell the
property. But now they are faced with receiving small monthly payments instead
of the full amount that they were hoping to get.
Private financing has been around for centuries. But, this trend isn’t even
fully understood by those in the trenches: real estate agents. And the funny
thing is, seller financing in real estate sales, is considered the “granddaddy
of the private cash flow industry.” There is approximately $318 billion in
privately held real estate notes, and this includes: residential, commercial,
industrial, agricultural, and vacant land.
In the small business market approximately 90% of the sales are seller-financed.
And in the “freestanding” mobile home resale sector, approximately 46% of the
sales are seller-financed. Each year will bring over 180,000 new business notes
worth over $25 billion and 500,000 new mobile home notes worth over $5 billion.
Selling these notes to investors is a new phenomenon that is reaching new
heights. But to be quite frank, not all note holders will ever realize the
potential for selling their note for cash because they don’t know they can. And
not all notes will be viable with the investor community. Nevertheless, owners
of these viable cash flow notes, will benefit greatly by deciding to sell.
It doesn't hurt to check with somebody to see if your note is viable. Waiting
for the full term of a note to receive all of your money is not what most note
holders want. You need and want more. It is possible for a note holder to get
cash for their note. Finding an investor is fairly easy, and they usually can
have a quote to the note holder within 24-48 hours.
If you are a note holder, my advice to you would be to stop hanging onto that
note. Find an investor who will buy it. You will then have a lump sum of cash
that you can use towards other investments, paying off debt, home improvements
or just to feel you finally have YOUR money!
About the Author:
Wendi Lyn Jensen started JenseNote Investments after researching and learning
about this new phenomenon of liquidating cash flow notes which she knows will be
around for years to come. She has helped many note holders get the cash they
needed. For more information visit http://www.jensennote.com or call
801-725-5386. |
