Selling Your Note For Cash To Buy Gold

The USA's triple A credit rating has now been downgraded to a double A. Downgraded notes will be worth less and less as time goes on. Note holders of seller financed notes might want to think about cashing out now before things possibly get worse. There does not seem to be an end in site for years to come with financial forecasters predicting possible further losses as time goes on. People are also cashing out now while they can to buy gold which is skyrocketing in price by the day. With gold currently sold at $1724.40 an ounce, investors will continue to keep a close eye on the price of gold which is lucrative by anyone's standard.

Last weeks financial indicators witnessed one of the largest stock market fallouts since 2008. The Dow went down 634 points in one day. It was frightening for these shareholders to see such a drop in their bottom line just like that. Nas Daq lost 7% of its total value in one day with stocks plummeting. The S&P500 lost 6.6% of its total value in one day. This resulted in them downgrading the good ole USA from a triple A rating to a double A rating. In addition to that,Bank of America lost 20% of their total value in one day according to David Favor of "NBC Nightly News".


The results from this downgrade will be higher interest rates on bonds,loans for things like mortgages,credit cards,education,cars,etc. Gold is now on the upswing with prices for gold tripling in the last few years. Many people are now cashing out to buy as much gold as they can with the idea that the countries financial situation could get worse. The experts are predicting very much more of the same,that our present financial situation could potentially deteriorate even further. So it may be a good idea to get the most out your seller financed note while there is still time. Its really hard to say just how much the value of any seller financed note will go down resulting in further loses for our note holders out there with carried back paper.

So in conclusion, its safe to say that our current markets are in turmoil. Because our politicians haggled about policy way too long, we lost our triple A,S&P500 rating which resulted in the nations leading financial experts predicting that our stock market will continue to fluctuate on this never ending roller coaster. This also means higher prices for everything we buy and uncertainty in the stock market which ultimately leads to fear which always results in stocks plummeting in this downward out of control spiral. And so as a means of financial rescue, many are turning to gold as a sound investment and cashing out their seller financed notes of all kinds just to buy as much of the precious metal as they can. Who knows what the financial future of our country will be in the next few years? No one can tell for sure at this point. The only thing that is known is that the financial future our country will continue to be in a state of uncertainty.

Pricing Seller Financed Notes

In the pricing of seller financed notes there many things taken into consideration.  Some people like to just put a certain percentage on the dollar for every note priced, but there is so much more involved than that. In this discussion, I  will outline about the different factors that make up the pricing of every note whether it is a note on a single family residence, land contract, mobile home, RV park, or a business.  Buyers interested in any seller financed note will put a grade on that note which is determined by 6 different factors.  The information gathered in these 6 different areas results in a final grade for the note. Once the note is graded only then can a final price be determined for that note.

The first and most important factor in the pricing of any note is equity which is the amount money already in the property.  One can see just how important this information is to buyers, since they base 50 % of their decision on this bit of information alone.  If a large amount of equity is already in the property when the note holder decides to sell their note, they stand to get a much larger price for their note than if they just started paying on their note and did not have much into it. Thus, the more you have into the note, the more you will get out of it.

Secondly is the credit score of the payor.  The credit score of the payor is important for the following reasons.  The higher the score of payor, the higher the payout will be on the note thats up for sale.  The buyers base 20% of their decision on this information, and will pay more for a note when they have information telling them they will be getting their monthly payments,on time, and without delays. Thats what a high credit score shows the buyers and thats the kind of payor they will want to have sending them their monthly payments. Thus, a credible payor shines in the eyes of the prospective buyers.

This also leads to our next factor in pricing seller financed notes which is payment history.  Every buyer will examine the payment history of the payor on the note to determine gaps in payments, late payments, or payments that just did not get paid at all such as delinquent payments.  Another 20% of their decision comes from this information so it is important for any payor to have all their payments made on time without delays or gaps between monthly payments.  The better these numbers are, the higher the payout will be for the note up for sale.  The number of payments made accounts for 10% of their decision and fourth on our list of pricing factors. This is also called "seasoning."  If more payments have been made, more money is into the  the property,thus having more equity which is most important as previously stated.

Fifth on our list is the type of note considered for pricing. There are seller financed notes on single family residences, mobile homes, land contracts, RV parks,condos,apartments,and businesses.  So the list is wide and every note is different with different circumstances connected to it.  And finally, the sixth factor in the pricing of every note is the position of the note whether it be a first position note or a second position note. First position notes will always get a higher payout than second position notes.  This is so because the buyers who buy any second position note are also responsible for the payment of the first.  Thus, it is always best to go into a seller financed note deal selling a first position note over a second.

In conclusion,note pricing is a very detailed well thought out process that involves six different factors. Of the six factors of seller financed note pricing, equity being the most important followed by the payor's credit score.  The buyers then look at payment history followed by the number of payments made. After that, consideration of the type of note and its position are all taken into account leading to the note receiving a final grade.  Once the note is graded, it is priced and ready to be bought by its prospective buyers.  

Now Is The Time To Sell Your Seller Financed Note

Yes, now is the time to sell your seller financed note before things actually get worse. On March 9, 2011 it was reported that housing sales have gone down yet again due to low appraisals of residential housing. Foreclosures are still on the rise because of the present day financial shape of our work force,banks and lending institutions. Private lenders are upping downpayments on residential homes as a means of protection against low appraisals in neighborhoods  with lots of foreclosures for sale.

According to National Public Radio, housing sales are down 10% due to low appraisals in residential areas. If a residential neighborhood has a high rate of foreclosures in it, this one fact drives the prices of other homes, for sale in the same area, way down below the sales prices that they are presently listed for.  Once a buyer finds out this information, they are all over trying to buy a home that has been appraised at lower than the asking price.  The home owner trying to sell their home just sees this as a deal breaker and no sale is made as a result.

Private lenders are protecting themselves from this by increasing the down payment requirements on residential home purchases.  They have found a way to get more money from a bad situation, but at the same time creating a worse situation that results in no sales of residential homes in areas where lots of foreclosure properties are being sold. So, even the people trying to take advantage of market that does not include the banks or lending institutions are now encountering yet another road block in their efforts to provide funding to new prospective home owners wanting to buy these homes.

With foreclosures on the rise, the numbers will only increase in our present day economic situation.  The banks and lending institutions are so scared of lending money or granting extensions on foreclosures. No one wants to be labled after the bail out as still doing business the same as before the bailout.  They have become insensitive to the plight of their clients and are foreclosing on homes at an astonishing rate higher than ever before.  How much more exclusion can the general public take is only a question that time will answer in the coming months and years.  Future anticipation of a resolution to these issues is not in the foresable future so hold on and keep the faith that hopefully things will get better than they are now at this time.

So in conclusion, now is the time to sell your seller financed notes before things get even more complicated for private lenders to provide seller financed opportunities to new prospective home buyers trying to obtain homes in our present day economy.  Cashing in your seller financed notes may not be a bad option for getting cash now before  pricing can be affected any further.

Come All Ye Fellow Note Finders

Questions You Should Ask The Buyer of Your Note

     Today we’ll be discussing the questions you should be asking about  note buyers.  First,Will my buyer give me a fair price for my note? Absolutely, their prices are based on 6 different factors which I will discuss in detail in another video later on. Ask your buyers if they will offer a partial purchase in addition to full purchase? Inquire about closing cost to you if any. You can also ask what their time frame for getting your money. Now this a very important one and is most crucial in any transaction. Its the level of customer service your buyer can give that can make the difference in getting clients to work with verses watching the dust collect on your telephone.
     When asking about a buyer, find out what his or her level of customer service is.  Will he or she be available at all times to answer any further questions you may have. What are their hours?
You should also get a feel for your buyer’s personality to see if you’re a right fit to do business together. Most buyers are quite friendly and display excellent customer service skills to their clients. However, some are not as friendly and are somewhat aggressive in their style of handling clients.  You’ll be able to tell very quickly whether this is someone you want to do business with or someone you would like to completely stay away from.
     I hope this info was helpful in your understanding of the questions you should be asking when choosing a buyer for your note. Until next time, do have a good day.

What is a Note? « Kenneth Kern/ Orange Blossom Note Services

What is a Note? « Kenneth Kern/ Orange Blossom Note Services

Today I would like to talk to you about a document called a "note." From day one, notes have always been synonymous with the real estate business. Well, let’s start with, what is a note and what purpose does it serve in the real estate business? A note is an IOU, a written promise to pay, with all the terms and conditions of the obligation, signed and in proper legal format. It’s also referred to as "Promissory Note." A note can be secured or unsecured. A secured note is one that is attached to another document called a "Mortgage" which is a document that simply states that if the obligations of the note are not met, the property may be sold to pay for the note, thus the note is secured by real estate. With an unsecured note, there is no collateral for non payment of the terms. The note is only secured by the payer’s written promise to pay. Notes are bought and sold everyday by buyers who are looking for long term investments, along with the sellers of the note looking to meet a special financial need that must be met for a variety of different reasons, such, as credit card debt, downsizing their assets, maybe their putting a kid through college, or maybe they didn't even want the note in the first place and sold it as an only means of liquidating the property in a fast and timely manner.

I hope this info was helpful in your understanding of what a note is, its purpose, and its function in modern everyday real estate transactions.

Blogging/Where The Rubber Hits The Road

For all the time spent on blogging with all the different networks and mazes of people all linked and talking about something, something they feel strongly enough to put it in print and publish it for the world to see and comment on.  These my friends, are the bloggers struggling to get that good clean original content on the screen in a timely professional  manner,some not so professional.  This is also where the rubber hits the road for bloggers out there trying to get their point across.  Once you start to see your competion's websites and blogs, its easy to see who's really serious about their interest.   There is a sea of crap out there when it comes to blogs and there are some so informative and interesting, you can feel the passion they have put into the words of their articles, not mention that their presentation is usually first rate by anyone's standards.  Yes, the true professionals out there are plain to see with websites and blogs that capture the interest of  their readers and keep them going back for more accurate, up to date information.  So blog away for blogging sake.  We're all out there patiently waiting and watching your every move.