How Do You Make Money With Owner Financed Notes?
Whether a seller, investor or broker, there are many opportunities to make money with owner financed or seller carry back notes. There is a lucrative secondary market for seller financed mortgages also known as the paper business. Here are the three most common ways people make money in this segment of the cash flow industry. Maximize Selling Profits A seller often takes back financing for a buyer to appeal to a larger group of buyers and maximize the sale price. A property seller may also elect to take back a portion of the sale price for long term interest income. Why should the banks make all the money? Did you realize that a bank earns back almost 2.5 times the loan amount on an average $100,000 loan at 7.5% that runs for a full term of 30 years? The payment would be $699.21 based on a 360 month amortization which means the buyer will pay back over $251,715.60 after 30 years on the $100,000 loan. All due to the power of interest! Referral Fees A note finder, broker, or consultant e
