This entry treats seller financing as a capital strategy, viewing the seller-held note as a financial asset to be created, held, or sold.
Log in to followI'm getting ready to put money to work on this side rather than owning buildings, and there's a fork in the road I can't reason my way past. One school says the borrower is the lo…
I'm carrying paper on a duplex I own, buyer putting 12% down. The agent's line was that if the buyer stops paying I just take the house back, and that sounds far too simple to be…
Sold a 1970s three bedroom in a secondary midwest market 18 months ago, 168k, buyer put 5% down, I carried 159.6k at 7.5%, 30 year amortization with a 5 year balloon. Payment 1,11…
A seller I've been talking with is carrying a $180k note at 9% on a house he just sold. Someone in another conversation told him his yield might be 11%, or might be 6%, depending.…
The house came to me last year, small 2 bed 1 bath in an older part of town, no mortgage on it, nothing to pay off. I had it under contract at 185k and the buyer's lender turned h…
Simple numbers so anyone new can follow. Sale at $240,000, buyer puts $40,000 down, I carry $200,000 at 8.5 percent, amortized over 30 years with a balloon at year seven. Payment…
For anyone who hasn't run into this yet, when you finance a sale yourself there are two common shapes and they are not the same asset. First shape. You deed the property to the bu…
Deal in front of me is a $320k house, buyer bringing 10% down, so a $288k note. I intend to sell the note after roughly twelve months of payments rather than hold it. Two structur…
Renovated 3/2, 1,450 square feet, in a first ring suburb of a mid size market. All in at 205k including holding. Listed at 269k, best offer 265k from a buyer who has been denied t…
Numbers first. $200k sale, $20k down, $180k carried at 8%, 30 year amortization with a balloon at year five. Payment works out to about $1,320 a month and the balance at the ballo…
I've had 40 acres of mostly wooded ground for a long time, no improvements, a gravel access easement, and county zoning that allows one house per 10 acres. Asking 62k. The only se…
I sold a small two bed one bath in a low price market last year for 62k. Buyer put 6k down, I carried 56k at 9% on a 20 year schedule. Payments have been perfect for 13 months, wh…
The prepayment section on a note I'm drafting reads that the borrower may prepay in whole or in part at any time without penalty. That single line hands the duration of the asset…
Sold a small duplex last spring and carried $148,000 of the price. Since June the payments have landed in my personal account by transfer, and I track them in a spreadsheet with c…
I renovated a house intending to sell outright, the scope ran over as usual, and now I'm considering carrying the paper instead of taking a thinner cash number. Something I don't…
This was supposed to be the easy version. I had a small two bedroom I had fixed up, market value around 122k, and a buyer who could not get a mortgage because of a short work hist…
I have spent two years reading about lending and never actually put money out. What finally happened is that I sold my own duplex and carried the paper instead of taking cash, whi…
I'm about to carry on a 1970s three bedroom in a decent second-ring suburb, priced at 400k. Buyer is self-employed, two years of returns that no bank will read charitably, and he…
I've read maybe a dozen threads here where someone sells a house, carries the financing, and then talks about the note like it's a thing sitting in a drawer with a price on it. I…
I got a sample note-and-deed-of-trust package from a title company and read the whole thing. There are blanks for the late charge, the grace period, the default rate, and the ball…