Promissory notes are used to record payment terms of financial loans including mortgage notes, automobile and personal loans. Promissory notes are a legal ‘promise to pay’ document which can be used in a court of law if borrowers default on repayment.

Promissory notes include details of the terms and conditions of the loan. The note payable should include the amount of funds borrowed, interest rate, number of payments due, frequency of installments, late payment fees, and whom payments are payable to.

Most promissory notes include an acceleration clause detailing consequences the borrower will face if he defaults on the loan. Demand promissory notes require immediate payment in full if borrowers default on loan payments.

Borrowers will be responsible for any collection or legal fees incurred by the lender when attempting to collect the debt. Far-reaching consequences can occur when signing promissory notes with acceleration clauses, so read the fine print before signing legal documents.

Promissory notes should also include any prepayment penalties. Many lending institutions impose hefty fees for paying loans early. Depending on the loan amount, prepayment penalties can amount to thousands in early payoff charges.

A variety of promissory notes exist. Simple promissory agreements are used when loan repayment will be made in one lump sum. Simple promissory notes are typically used for short term loans. For example, if you borrow $1000 from a friend and can repay it within a few months, a simple promissory agreement will suffice.

Installment notes are used when borrowers require repayment to occur over a long period of time. If your friend provides a personal loan of $5000 and repayment occurs over a 12-month timeframe, the promissory agreement would include the amount of each installment payment, along with any interest charged.

Depending on the amount of money loaned, collateral may be required. If so, promissory notes should include details of the property used to secure the note; car, home, jewelry, etc. Collateral is pledged for the repayment of the loan. If borrowers default on the loan and unable to repay, the lender has the right to assume ownership of property used as collateral.

Simon Volkov is a real estate investor, business owner, and published author. He offers an extensive library to help individuals understand the types of promissory notes, how and when they are used, buying and selling promissory notes and much more via his website at www.SimonVolkov.com.

Real estate notes are legal contracts used to assign buyer rights and document terms of real estate transactions. Real estate notes are required to legally buy, sell or transfer real property or raw land. Investors often use notes as collateral for purchasing additional properties or sell them in exchange for lump sum cash.

Real estate notes record the promise to pay between buyer and seller. When used as collateral, realty notes are used in conjunction with mortgages to aide in property financing. A common example is seller carry back financing. Using seller carry back, the property owner finances all or part of the home loan. In most cases, buyers provide a down payment and pay installment payments toward the balance.

When seller carry back financing is utilized the property owner can sell mortgage notes or trust deeds to a private note investor or lending institution. Seller financed notes have become increasingly popular for both commercial and residential properties. Sellers who offer carry-back financing can sell real estate notes to obtain funds for new investment opportunities.

Real estate notes are used when individuals purchase property stocks. With this type of realty transaction, a group of investors partner together to purchase realestate and share equal ownership. Combined funds are deposited into a real estate investment trust. REITs are companies which own multiple properties to generate profit for participating investors.

Mortgage notes can be sold for cash either in part or whole. It is common for note owners to sell a portion of cash flow notes in order to obtain necessary funds to purchase additional investment properties.

While selling cash flow notes offers a quick option for raising capital, doing so is not without risk. Investors who sell partial real estate or commercial notes do not receive full value for their investment. In addition to transfer fees associated with the sale, property owners might be required to obtain property appraisals or pay property title fees.

Buying and selling notes is a specialized field that requires investors to obtain a thorough understanding of real estate laws and taxation; finance options; and documentation and transfer of sales.

Although real estate investing can be a lucrative financial venture, it does require an investment of time to become educated about the process. Real estate investors who take time to learn the trade raise their potential for expanding their long term financial portfolio.

The Internet is an excellent resource to obtain information and resources about all phases of real estate investments. Always use caution and thoroughly check out the individual or organization providing the information.

Libraries are another great source for locating information about building a cash flow business. Libraries offer an abundance of books, real estate publications and investment courses.

Last, but not least, browse the Classifieds section of local newspapers or websites such as Craigslist to locate realtors and investors who offer real estate notes and investment seminars.

California real estate investor, Simon Volkov, offers a variety of real estate notes and land contacts for sale through his Investor’s Club at www.SimonVolkov.com. Subscribers are notified via email when new investment opportunities are presented. Simon also offers a comprehensive real estate article library containing hundreds of informative articles available online or through email subscription.

This is one of the most amazing deals of the WEEK. A turnkey Multi Unit that is rented on both sides for a discounted price of 20k.
Yes 20k and $1000.00 a month in total rents monthly coming in on this 2UNIT..wow!!!!!
Here is the Indiana Property

906 W. 25th St, Indianapolis, IN
This property is a duplex
2br
1ba on each side.
Both sides rented out with tenants each paying $500 a month.Both sides of this duplex are rented out for $500/mo each. One tenant just signed a year long lease in May 09
Asking (Set Price 20K). Warranty deed.

1. Both Sides are rented.
1.a) Unit A is rented for 500 and 1 year lease signed in May of this year. This unit needs no work.
1.b) Unit B is rented till August and rented for 500.
Need to be a quick cash closing..

DRIVE BY AN MAKE OFFER TODAY!!!!!!!!!!!!!!!!!!!

Condition of sale: Home being sold “as is” – no repairs will be done. Pre-approval letter & earnest money required. Offers made without proof of funds or pre-approval letter will not be considered EMAIL ME TO BE PLACED IN MY BUYERS LIST

$5k assignment fee

CONTACT ME
ELIA
317-453-1497

http://www.hoosierflippers.info

906 W. 25th St INDIANAPOLIS IN

Alternative (or non-traditional) investments are an asset class that does not include the typical stocks and bonds. They include hedge funds, tax liens, real estate, mortgage notes and deeds, privately held companies and more.

Their growing popularity stems mostly from their low correlation with the typical investments such as the stock market. Even many large institutional funds are investing a portion of their portfolios to alternative investments. Some individual investors are attracted to Senior Life Settlements, real estate, precious metals and privately held notes just because of their non-correlation. Fear of the stock market has instigated many of these investments.

Before you make any investment decisions be sure to consult with your CPA, financial planner, or attorney.

The Truth About Seller Financing:

Sell Fast Without Sacrificing The Asking Price

The problem

When it comes to selling real estate, one of the largest obstacles sellers face is a depressed market. When market conditions are poor, it is nearly impossible to sell at the seller’s desired price point, even if the property has attractive upgrades such as an updated kitchen or new flooring.

With traditional property sales methods, the only way to prevent the property from sitting on the market indefinitely is to drop the price. But in cases where the seller is unwilling to lower his asking price, this is not a practical solution. Without an alternative strategy, the seller is forced to keep the house on the market for an extended period of time with an unrealistic asking price, hoping for the right buyer to come along. And we all know that “perfect” buyer might NEVER materialize!

Privately financed real estate sales, however, can be the perfect solution for these “tough sell” situations.

 The seller finance solution

Many home sellers are turning to private financing to get rid of properties fast without dropping the price. It makes sense because a price reduction doesn’t always work – especially in a highly competitive or depressed marketplace. Private or seller financing is a powerful tool to remedy real estate situations that otherwise look grim.

What makes seller financing work in this type of environment is that it attracts an additional group of potential buyers – thereby opening up a unique, untapped market and increasing the chances of a successful sale. These potential home buyers who aren’t able to buy a house via traditional lending are the key to the seller finance solution.

A large percentage of people throughout the country cannot get approved for bank funding to buy real estate because of their credit situation. Many of these people are still in the market to buy a house, however.

The “credit-challenged” are often frustrated with the limitations of apartment living or being renters. These individuals view the seller finance option as a great opportunity to stop throwing away money on rent and start living the American dream of home ownership.

A savvy property seller who recognizes this opportunity can salvage an unfavorable situation and turn it into a bona fide seller’s market. By using this type of creative financing, real estate sellers could actually end up getting MORE than their original asking price, even in a depressed market.

The home buyer also comes out a winner because he can now purchase a home that would otherwise be out of reach. And if there is a real estate agent involved, she also benefits by collecting a commission from a successful property transaction that would not have taken place via traditional means.

It’s one of those rare situations where everyone at the negotiating table gets what they want.

Turning the sale into cash

So what happens if the buyer does not put down a substantial initial payment and the seller needs additional cash to purchase another property? That’s where the beauty of seller-financing comes into play. It’s possible for the seller – now the mortgage holder – to turn around and sell the mortgage note for a lump sum of cash.

Finding a potential buyer for a mortgage note is easier than most people would even imagine.

As a professional note finder, I specialize in helping holders of mortgage notes get immediate cash for their paper asset. Contact me if you hold a mortgage note, whether it’s a newly created seller-financed cash flow or a more mature note – I can help you get the cash you need.

If you are going to sell your note, there are several tips you should know before you do. As a Phoenix note buyer, I, Jeff French, want to share tips with other real estate investors, note sellers, sellers who have carried back paper, etc., to help them learn the best ways to get the most money for their notes and real estate when they go to sell them.

First Things First, Get Your Note In Writing

First things first, you should have your note in writing. This sounds simple, but some people just are too trusting and think that buyers will pay if they say they will pay. If don’t have your note in written form, then you simply won’t be able to find a serious investor who will pay you for it.

The Second Step – Be Sure All Payments On The Note Are Current

All payments on the note should be current so that the note is in good standing with all payments being made when they should be made.

The Third Step, Be Sure the Obligor Is Accessible

The person making the payments on the note should be accessible so that you have the latest contact information on them in case they have to be contacted regarding payment address changes and similar issues.

Fourth Step, Be Sure the Note Is Recorded With the San Diego County Recorder (Lien)

Your note Lien should be recorded at the Maricopa County Recorder’s Office for the county in which the property securing it is located. To verify this, you should look the lien up at the Maricopa County Recorder’s office.

Fifth Step – Season The Note

You should be sure that the note has been in existence with payments timely made for a period of at least a year and preferably longer.

Sixth Step – Be Sure the Note Has Clear Terms

Your note should have all the terms stated in clear, unambiguous language. This means you should be able to look at the face of the note and know when it started, when it ends, what the interest rate is, what the monthly payment is, and what real estate secures it, as well as what happens in the event of a default by the person obligated to pay the note, and of course, who that person is.

Seventh Step – Have An Appraisal

You should have a copy of a current appraisal for the real estate securing the note. If you cannot afford or access a formal appraisal then a broker’s price opinion or BPO from a reputable real estate broker may suffice, though an appraisal is certainly better.

Conclusion

If you follow these seven steps and tips on how to get the most money for your note, you will be able to receive the highest value for it if you decide to sell.

I hope these tips have been helpful to you. I know I wish I had this information when I was first getting started as a Phoenix Note Buyer!. 

If you would like to learn more about buying or selling notes, or if you are interested in selling a note that you already have, feel free to give Jeff a call at (602) 796-3914 or (602) 866-2562. Or e-mail me at KachingInvestments@gmail.com

There are 3 economies to pay attention to:

1. Your Personal Economy. This is the one that really matters. The life you will share with your family and friends will be directly impacted by your finances.
2. The People’s Economy. This is the wealth of communities of people. You could look at it in terms of the American public as a whole or separated into demographic or geographic categories.
3. The Financial Institutions’ Economy. This is the wealth of the people who own banks and financial services companies.

Right now, the financial institutions’ economy is doing quite poorly as a result of foolish decisions. Financial services companies created and bought debt that was not repayable. They packaged investment products in a way so complex not even Warren Buffet could understand them. The Fed has decided to defer and worsen the consequences of their inflationary monetary policy… and now “the economy” is crumbling before our eyes… but which economy is it?

Although often not fulfilled, there is clear potential for your personal economy to be completely separate from the financial institutions’ economy. Your wealth can be held in stable currencies, gold & other precious metals, real estate, private loans, and private stock. You can make investment decisions into these types of assets that will flourish even as the financial services industry collapses.

The people’s economy also has unfulfilled potential to be completely independent of the financial services industry. In fact, if enough people services themselves financially, there would be no large financial services industry.

What can you do?

Separate your personal economy from the financial institutions’ economy. To do this…

• You may want to consider holding your cash in banks of a country that has provides for monetary stability superior to the U.S. dollar.
• Learn as much as you can about investment into precious metals, real estate, private companies, and private loans
• Use a self directed IRA or 401k to manage your investments into these alternative assets with the maximum flexibility allowed by law.

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Hello, and welcome to my blog. My name is Gregory Kirkwood. I am the President of GK Funding and I`m in the business of purchasing Owner Financed Mortgage Notes, Deeds of Trust, Land Contracts, and Structured settlements/Annuities.

Would you like to receive a lump sum of Cash Now!! instead of waiting years to collect the money owed to you? Did you know also that you can sell a portion of your mortgage payments rather than liquidating the entire note? Or Partial Purchase Program enables you to receive a lump sum of Cash Now!! for a predetermined number of future mortgage payments.This also applies to Structured Settlements/Annuities as well.

Think of it !!! You could use the money for anything you want or need,such as:

*Investment opportunities

*Consolidate bills

*Send a child to college

*Buy a new car or take a Dream Vacation

In conclusion there are many good reasons for selling a mortgage note, and one Great reason for selling to GK Funding. We pride ourselves on paying the Highest Price In the Industry. Also we conduct ourselves in a professional manner and can fund your deal quickly.

Please call GK Funding today @407-572-3689 or 321-402-4562 for a Free, No Obligation quote. We guarantee you`ll be glad you called GK Funding

Remember:”A dollar today is worth more than a dollar tomorrow”

gregkfunding@aol.com

Fixed rate loans generally come with one of two options; the 30-Year Fixed and the 15-Year Fixed. If a borrower is planning on being in the same home for a long period of time, a 30-Year Fixed may be more attractive because it offers stability. The monthly payment will remain consistent over the life of the loan. If interest rates are at historic lows at the time the borrower is seeking to obtain financing, this is a good program to consider.

A 15-Year Fixed loan program offers the same stability, but the accelerated amortization schedule makes the monthly payment substantially higher. While the interest rate may be lower on this type of loan, the borrower must be willing to commit to a higher monthly payment. If the borrower wishes to retire in 15 years and be debt-free at that time, this loan program may be more suitable to the borrower’s long-term needs.

It is also possible to make pre-payments on a 30-Year loan and reduce the life of the loan, as well as the overall interest payment, without committing to the higher monthly payment of a 15-Year program. As long as there is no pre-payment penalty associated with the 30-Year mortgage, pre-payment offers the borrower the latitude to make additional payments when it is affordable. If cash flow becomes difficult, this arrangement will not put the borrower in a compromising position.

Points are up-front fees paid to obtain a better interest rate on a loan. One point equals one percent of the loan amount. A lower interest rate may result in a lower monthly payment, but it is important to consider how long you intend to be in the loan, and to compare current rates to historical market trends.

If you take out a $300,000 mortgage and decide to pay one point, this translates into an up-front closing cost of $3,000. Paying a point up front saves $100 a month but it will take 30 months to recuperate the cost of that point. If you decide to refinance or sell the home before the 30-month mark, your money is lost. In this case, you would benefit financially by remaining in the home longer than the 30 months.

Rates run in cycles. When rates are at historical lows, it is sensible to pay points if you plan to live in the home for an extended period of time. It is unlikely that rates will go down; hence, there will be no need to refinance.

When rates are up, there is a strong likelihood that they will come down. This is no time to pay points. The chances of refinancing in the future are extremely high, and you will likely not be in the loan long enough to recuperate the cost of the points.