Posted by Dr. Werner on December 26, 2003 at 16:48:41:
In Reply to: Helping FSBO'S posted by Manny on November 13, 2003 at 10:38:38:
I work with FSBO home sellers all the time and the key is to have an investor who will purchase the note at close. The idea is to explain to the seller if they advertise Owner will Finance, chances are good the phone will ring off the hook. Most institutional note buyers might go to 80% LTV and either need a few months seasoning or the discounts are high. We cultivated an investor that will buy notes from 75K to 3,000,000 and allows 1st lien notes to 90% and 2nd lien notes from 5 to 10%. We also negotiated with the investor a wholesale discount to us of 10% max off the face value. When you get these types of terms you can offer the seller 90 to 95% of appraised value for the home using this type of table funding of the note. Another good idea is to type up a free book explaining how to sell the home using your note expertise. Do not over educate the seller...most just want easy understanding and how much will they net from the sale with your help! Motivated sellers are the key also.
Hope this helps
- Re: Helping FSBO'S Nevil Curtis 10:09:58 11/22/2004 (0)
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