If you are reading this post, maybe you’re looking to sell a note or maybe you’re looking for someone who is selling a note with owner financing in California. Let’s break down the facts so you understand how it works and so you have all the info you need to move forward.
How Notes Work
A note is a real estate investment based on a mortgage. It works like this: a home buyer purchases a house and gets a mortgage. The lender provides the mortgage and anticipates the mortgage to be repaid. That mortgage note has value (the future potential repayments) so if the lender wants to access that value, they can sell that note to someone else. A note investor gives money to the lender and, in exchange, is investing the potential of earning those mortgage repayments still to come.
A note is a great way to diversify your investment portfolio out of strictly real estate while still enjoying the potential for cash flow.
What Is Owner Financing
Owner financing is when the owner of an investment carries a mortgage, allowing the buyer to buy from them instead of taking out a loan from a bank. Home sellers, for example, might sell their house through owner financing, accepting regular “mortgage” payments paid to them over time instead of to a bank.
Owner financing is helpful especially if you’re buying an investment and don’t have the capital or credit, or don’t want to spend all of your capital at once but would rather spread out the payments.
Selling A Note With Owner Financing In California
If you’ve been searching for information about selling a note with owner financing, chances are you’re looking for any of the following possibilities, which may seem confusing.
- You have a note and you’re looking to sell it with owner financing, so that the note investor takes the note but pays you a regular income
- You are looking for a note investor or broker who is selling a note with owner financing in California, so that you can pay them a regular amount for your note investment
- Or perhaps you have a note on a property that has seller financing and you’re looking to sell that note
- Or maybe you are looking to buy a note from a seller on a property with owner financing
As you can see, it’s potentially quite complicated and there are many shades of meaning to the simple phrase: “selling a note with owner financing in California”.
Fortunately, we’re here to help sort it all out. Just pick up the phone and give us a call at (805) 285-5247. We can walk you through the fuller meanings of each one and help figure out which one you’re looking for.