Market pricing for real estate cash flows

Banks and other financial institutions purchase cash flows on a regular basis. These payment streams are often purchased without a discount. Aside from a change of recipient address for their monthly payments, the transfer is completely seamless to the payer.

These payment streams are usually purchased from institutions with similar lending parameters. This means that the buyers are familiar with the credit rating and demographic of the ...

In previous issues, the best method for selling a home in a tough market with seller financing was explained. The benefits to the seller from involving a qualified cash flow finder with a seller financed deal and having a note buyer "on board" before the note is created were also covered. While using seller finance techniques to sell a property are no more difficult than a traditional real estate closing, following a logical and proven plan is the best method for ensuring a successful real esta...

As explained in the last issue, seller financing can be an extremely useful option to sell a house in a slow real estate market. Unconventional private lending is a great way to increase the overall sales closing ratio. When the property owner is willing to "carry back" a note, it is often possible to obtain a higher selling price and reduce the time needed to find a buyer. Plus, creating a note secured by real estate can give the seller a steady, interest-generating income stream for their lon...

Creative home sellers who offer seller financing to potential buyers can often sell their houses more quickly (and at a higher price) in a slow market.

While applying seller financing techniques isn't more difficult than traditional real estate sales, it is important to recognize that the buyers looking for seller financing represent a different target market than typical bank-financed customers.

Similarly, the process for obtaining a large cash payment for the seller after a note is cr...