Seller Financed Mortgage Buyers - The Market Is There!

Marketing Your Cash Flow Business To The Right Prospects

When the housing market becomes weak as it is currently, credit tightens and available money from lending institutions becomes almost non-existent for those with less than perfect credit. This becomes a double-edged sword, affecting both buyers and sellers. Individuals hoping to purchase a house can’t and sellers holding property are unable to sell. Fortunately, sellers often become the bank themselves and finance the deal directly with the buyer. This often is the case when the country experience and economic downturn.

Property owners employ and offer seller financing to increase the market to a wider array of possible buyers. Bypassing the lending institutions allows both seller and buyer to work an agreement which is beneficial to both based on their terms. However, you may be asking what does this have to do with the cash flow notes business? EVERYTHING!
Seller financed mortgage buyers love owner carry back notes. Because of the downturn in the economy, owner carry back financing is at high offering the savvy cash notes buyer plenty of opportunity to profit.

Remember, people that offer seller financed mortgages are just like you, the note investor. They want steady income coming in every month. However, they also sometimes want to free up their cash and invest elsewhere or simply want to get their cash in lump sum and move on, and forget the worries of carrying a note. This is where we come in as seller financed mortgage buyers. But, always follow your guidelines when evaluating the note before choosing to make an offer.

Check the creditworthiness of the buyer and see if the payments have been made in a timely manner. Check the amount of equity the homeowner has in the house, the length of the remaining term on the seller financed mortgage. These are just a few of the guidelines you should check before making an offer. Due diligence is always necessary to avoid costly mistakes.

In a lean economy it is important that we think outside the box and become creative. Eighty percent of the cash flow notes business is marketing and building your list of contacts and potential contacts with this list of contacts including both possible notes sellers and note investors. Contact mortgage brokers and your local banks. Don’t forget title companies and of course real estate agents. All of these have access to potential leads for owner carry back note holders that may be willing to sell their mortgage note.

Seller financed mortgage buyers, get to work and follow up with your marketing protocols - the market is there!