Probate Realtor Wants to Use Seller Financing

Virtual Coffee Q&A Call – July 2016

Our first question was from Nancy, a real estate broker in Florida, who does a great job getting probate listings and finding cash buyers for them, but she is struggling with how to talk some of her sellers (heirs & beneficiaries) into carrying paper instead of just wanting all cash, because she’d like to be able to add some properties to her own portfolio, as well as help some of her other investors get good terms on an investment instead of having to come up with all cash.

When the heirs want to be cashed out most of the time, the only way an owner carry deal makes any sense to them is if you can show them how carrying paper and selling the note will net them more than an all cash sale. Obviously, to be able to do this, you need to have an idea of what someone will pay for a note on the secondary market.

Another idea is not to fight upstream getting someone to do something they don’t really want to, and play along aikido style… moving along with the flow of their energy, not trying to resist or change it. What if one of her cash buyers would be willing to buy a property cash and owner carry it to her?

The next discussion was brought to us by Keoka, one of our OFC community mastermind members, who has done a fair amount of real estate investing, but is newer to buying notes. Right now she is preparing to close on an owner carry note she found through a broker, or note wholesaler, and she had some questions about the contract she was being asked to sign, and how the double close would actually work.

Not all of the due diligence is in, but it looks like she is going to be able to buy a note secured by a mobile home on land in Texas at 58% ITV (investment-to-value) which is great safety. The buyer/borrower put down a 20% down payment at the end of last year, and there is a solid 8-month pay history. Her yield is north of 15%. Congratulations, Keoka!! Rock on.

Right at the end, we heard from a guy from New York, who buys properties for cash on the cheap and then carries the paper. Everything was going smoothly for him in Alabama until his RLMO (registered licensed mortgage originator) up and retired on him…. rude, right? 😉 He was wondering if I had anyone I could recommend.

Unless you’re in a state like CA, AZ, TX or FL, it can be hard to find a large national player who will do this service for you. Your best bet is to leverage existing relationships. If you have a mortgage broker you are regularly sending business to, or if you have a real estate agent you consistently work with, see if they will leverage their relationships to find an RLMO that will underwrite your owner carry deals for you.

As always, thank you so much to those who spent the time to be on the call, participate and share their expertise… I appreciate the value that comes from the group experience.

Thanks, again, for participating in this wonderful world of owner financing and notes. Now go out there and do your part to create financial solutions, just one Mom n’ Pop to another 😉

My best,


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Once a month I host “Virtual Coffee”, a free Q&A call to discuss anything having to do with seller financing and notes, and to have a little fun while we sip our coffee together. This is the time to get free help from myself and others on the call. The insights you will receive will save you hours and relieve the stress of uncertainty.

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