�Land-ing� A Good Mortgage Note

A gentleman called me a few days ago wanting to sell his mortgage on a small parcel of land located in a remote area,custom bobbleheads, far from any population centers. The land had access to well water but no other improvements. He had purchased the property last summer for $60K and had recently sold it for $110K. Naturally,Thoughts To Remember Every Time You Will Do Comp Card Printing,custom bobblehead, he wanted us to pay him the full note balance.

With this real estate note,customized bobbleheads, where do we even start? It has so many challenges and red flags that no investor would even consider buying the full note. The isolation of the property and the fact that he wanted to flip what was almost certainly an overvalued note limits most note buyers to either buy a tiny piece of the note or,custom bobblehead, more likely, pass on the real estate note altogether,personalized bobble heads.

Right away,personalized bobbleheads, I knew that we would pay less for this mortgage note when he told me that it was collateralized by land. No matter how strong the other characteristics of the note,personalized bobblehead, land notes will get a lower price than will real estate notes on single family houses and commercial buildings. Quite simply, because bare land is usually less valued by owners than are other parcels,custom bobbleheads, there is a higher likelihood of default in the minds of note buyers. Land,,, other than that in prime locations,Uses Of Label Dispenser,custom bobbleheads, takes longer to sell and can decrease in value more quickly.

Real estate notes on land without several improvements are even harder to sell because of the added risk. We consider improvements to include power, water, sewer or septic, paved roads going to the property, etc. These types of improvements all add value to the property and make it more likely that it will someday be built upon.

If you�re thinking about selling a parcel of land,customize bobblehead,Revamping Security In Vancouver And Other Areas, recognize that a buyer will probably not be able to get a bank loan. Unless they can pay all cash, you will probably need to carry a note (offer owner financing). To decrease the risk of the note and to maximize the amount that you�ll receive if you later sell it,customized bobbleheads, you�ll want to structure the note correctly. Here are a few ideas:

1.Get as big of a down payment as you can. At a minimum, get 25% down, and aim for 30-50%.
2,personalized bobbleheads,Find Sales And Competitions Online.Sell to a buyer who has excellent credit, and who has the finances and willingness to cherish and improve the property.
3.Be certain that the sales price is close to the actual value,customize bobblehead, as determined by an appraiser.

Happy investing,.!