How do I set up an owner carry contract to make it attractive to a note buyer?
The top three aspects we look at are the interest rate, borrower’s credit worthiness, and loan to value. Make sure the interest rate fits the borrower’s credit rating. As an example don’t give a buyer with a 500-630 an interest rate of 6.5%. The higher the rate the more attracting the note is! Make sure the home is accurately appraised so any offer provided to you won’t be lowered later in the note purchase process by the property not being valued as anticipated. Highly important is the recording of the lien documents to the local County’s Recording office. Make sure this is done properly by simply having a local title company draw up the paper work and submitting them.
