Private Mortgage Note Buyer

U.S. Funding Solutions are buyers of private mortgages, aka buyers of owner financed mortgage notes and Deed of Trusts.

Private Mortgage Buyer

We pride ourselves in providing the best commercial bridge loans available for your particular situation and the best pricing and service if you wish to sell a private mortgage note and the note's security, the trust deed. Buyers of private mortgages purchase private mortgages at a discount. That discount is dependent on 2 primary factors, 1) The perceived risk of the note and 2) the terms of the note. Let me elaborate on each of these factors.

Private Mortgage BuyersThe perceived risk. Withing this factor are 3 elements when combined determine a private mortgage purchaser's perceived risk. They are a) The amount of down payment and/or equity, b) The credit of the borrower(s) and c) The perceived marketability of the property should the note buyer have to take posession of the property. These elements determine what a real estate note buyer uses as the discount rate to apply to the future cash flow. The terms of the note or what I like to say, the pure math of the deal. This element is more about numbers than perception as the discount rate determined above is applied to the future payments to "discount the future payments to a dollar amount today". In this note discounting, the shorter the amortization period and higher the interest rate, the lower the discount amount to the note seller.

Sell Private Mortgage

If you are considering selling a property through owner financing, please keep the following in mind. 1) Get as large down payment as possible. This not only lowers the discount to you should you ever want to sell a private mortgage note but it lowers the amount you will take a discount on as 100% of the down payment goes into your pocket. 2) Charge an above market interest rate. Remember you are in the drivers seat and the buyer most likely can't get bank financing. Aim for 3 to 5% above the prevailing mortgage rate. 3) Have the buyer provide you with a tri-merge credit report. Knowing their credit scores and history helps you in negotiating the terms.

Private Mortgage Note Buyer

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