[pharaoh]

In the current market, it is hard to get loans to buy properties and many real estate sellers are stuck with the properties they own for that reason. But there is always a plan B. Plan B is to be the lending institution. In other words, sellers can use the owner finance to sell the properties and then turn around and sell their owner finance note.

To make a good marketable note that you can sell for highest amount without affecting much your profit margin, you should do the following:
1- The down payment should be at least 10% which creates the equity that covers the unseasoning.
2- A competitive interest rate, not too low, not too high. In general, 8-10% is reasonable
3- Terms of the note, the traditional terms are preferable (amortized over 120 months, 180 moths, etc...)
4- Monthly payments are for principal + interest. Avoid interest-only terms
5- Avoid Balloon payments
6- Insurance and have your name as mortgagee
7- Credit score, the higher the better
The note has to be 1st position, no other debts involved in the deal.

I hope this would help many investors to sell their properties and I will be more than glad to answer any questions and help you sell your note

[iknowkevin]

I have found that while lenders have become very strict overall, there are still some good lenders and mortgage brokers out there who have solid products for qualified people. Take condos in the Panama City Beach area for example. Many lenders will not touch them or walk away two days before closing. I found a bank that qualifies their secondary market prospects ahead of time and is still lending on secondary homes for 10% down with great interest rates. If I can find that here, you should be able to find a good resource where you are. Owner financing is fine, but I have found that a solid bank to work with is much easier.

[houseman]

I have a property/home in which I am putting on the market. If I sell the property on a lease-option to buy or owner financing, would I still be able to do a 1031 exchange? If so, then how and when (upon signing the contract or pay-off (2 years))?

Please include details in your answer.

I can also add details if more info is needed to the question.

[pharaoh]

Originally Posted by houseman

I have a property/home in which I am putting on the market. If I sell the property on a lease-option to buy or owner financing, would I still be able to do a 1031 exchange? If so, then how and when (upon signing the contract or pay-off (2 years))?

Please include details in your answer.

I can also add details if more info is needed to the question.

I think you can do 1031 exchange, but i don't know details about that. you should check with your cpa or attorney

[Bhamhomes]

In this type of market we will see more and more real estate contracts (owner financing) and lease options. I bought a house 14 years ago on a contract and it has really worked out great for me over the years.

I've been thinking of doing a 1031 exchange on one of my rentals for either this year or in 2009 so I'm curious what any accountants might have to say to houseman's question above. I've got a good idea on the answer...but I think I'll leave that one for an accountant. Good luck houseman.

[pharaoh]

Originally Posted by pharaoh

In the current market, it is hard to get loans to buy properties and many real estate sellers are stuck with the properties they own for that reason. But there is always a plan B. Plan B is to be the lending institution. In other words, sellers can use the owner finance to sell the properties and then turn around and sell their owner finance note.

To make a good marketable note that you can sell for highest amount without affecting much your profit margin, you should do the following:
1- The down payment should be at least 10% which creates the equity that covers the unseasoning.
2- A competitive interest rate, not too low, not too high. In general, 8-10% is reasonable
3- Terms of the note, the traditional terms are preferable (amortized over 120 months, 180 moths, etc...)
4- Monthly payments are for principal + interest. Avoid interest-only terms
5- Avoid Balloon payments
6- Insurance and have your name as mortgagee
7- Credit score, the higher the better
The note has to be 1st position, no other debts involved in the deal.

I hope this would help many investors to sell their properties and I will be more than glad to answer any questions and help you sell your note

For this post i forgot to mention that this is for residential properties. For commercial, it is better to have higher discount (20%), shorter term, higher interest 9-11% and balloon in 60 to 84 months.

[mmpcreditrestoration.com]

Has anyone here ever referred clients to a Credit Repair Agency to overcome the obstacle a tighter lending?