Maybe Not the Best Time to Sell? There is a Good Strategy.

Non Traditional asset sales occur daily. The new job out of state only lasted a few years, moreover, the wife and children have moved back to the hometown. Dispensing with the house might not be easy, due to the propensity of new homes under construction. Accordingly, an owner-financed mortgage might be the fastest way to dispose of the property. You’ve started with a useful reference detailing the benefits and pitfalls of seller-financed real estate, but you’re unsure about becoming a lending institution, notwithstanding the attractive short-term interest rate. In addition, perhaps you’re not prepared to collect on a potentially bad debt like that ‘financial representative’ in the movie. Real estate sales, structured with homeowner financing, are not the norm, but, for example, in California, typically around 500 homes statewide are listed for sale with owner financing.

The plumbing business provided a good living for 40 years and accumulated enough money for a comfortable retirement. Meanwhile, there’s another wave of new construction in the county, consequently, this might be an opportune time to sell. One of the employees might be interested if a deal can be arranged, but his credit might not support a transaction of this size. Holding a short-term business note, just like the one that established the company, is the quickest way to consummate the deal. The sales of small businesses are an increasingly common scenario, generally, nearly 2500 are for sale in California, where the buyer may be applying for a Small Business Administration loan. SBA may look more favorably on an application that includes seller financing as evidence that the seller is confident in the soundness of the business. Seller financing frequently arises with low cash flow businesses or unconventional service businesses not attractive to traditional lenders.

In either case, owner financed home sales and small business sales are subject to the statutes governing financial services. Californians have the benefit of the California Department of Business Oversight as a source of information, publications, laws, and regulations. More convenient are business note and mortgage loan buyers, companies with names like Amerinote Xchange, who specialize in the secondary market of seller financing, that is, the acquisition of existing notes.

Ordinarily there are cautions and advantages to the note holder considering an asset sale, subsequently, risk can be minimized with a little research. Once the search is narrowed down to the finalists, the Better Business Bureau recommendation winnows out the non-qualifiers. Note owners must also be interested in the years of experience of the note buyer. Certainly, no two transactions are alike, accordingly, the more experienced firm offers the most alternatives, the best advice on the choice of full payout or partial. Interestingly, when the note buyer has experience in both the residential and commercial markets, tactics from one market inform the other, providing the note owner with the least cost, best liquidation strategy.

Financial instrument varieties are complicated, interest rates are unpredictable, a reputable note buyer offers the convenience, experience, and flexibility to guide customers to the best outcomes.

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