"We provide what on one else can"
Owner Financed Notes
Overview & Training
also sometimes known as seller-carry back mortgages, are created when a seller of a home decides to “carry” a note for the purchaser of his or her home. This is usually done when the property is difficult to sell or when the buyer cannot obtain traditional financing from a bank. This usually happens because the buyer has bad credit or “too much debt” or maybe even because the property is in a rural location with a lot of land (banks typically do not like to lend on these types of properties). There are literally billions of dollars of owner-financed mortgages in circulation at any given time. Owner financing has been in existence for decades and is becoming more and more common today because of the growing numbers of individuals who fail to qualify for a traditional loan from a bank or mortgage company. Also, banks are becoming more conservative in their lending practices. These factors prevent millions of families from being able to obtain home loans, thus reducing the number of potential home buyers. With this in mind, home sellers sometimes choose to offer owner financing in order to sell their homes faster. They usually request a small down payment (generally 5% to 10%) and demand higher than market rates of interest. As is generally the case, immediately after the home is sold the seller is satisfied because he or she has sold his or her property and is receiving a good return on his or her investment. As time passes, the note holder might decide that having a lump sum of cash now would be better than waiting years to collect the balance, usually one month at a time. Land contract, contract for deed, deed of trust, trust deed, and promissory note are other names given to “mortgages.” We purchase all of them.
This is where you, the Referral Agent will earn your referral fee. You can help create a win-win-win situation for everyone involved by helping the note holder "cash out" his or her note. The note holder will be happy because he or she will receive a lump sum of cash now instead of the low monthly payments over time. The note buyer is happy because they will be receiving a favorable return on our investment. And you, the Referral Agent, will most undoubtedly be happy because you will earn a nice fee each and every time you close a transaction with us. Everybody wins in this situation. As a referral agent, it is very important that you believe in this same principle. By doing so, you will prosper as a business person who helps yourself and others, because by helping others you will also be helping yourself. There are many good reasons for an individual wanting to cash in their note. Some of these are Consolidating credit cards Paying for his or her children’s college Taking an exotic vacation Purchasing a new home or second home Other investment opportunities The above are the same reasons why individuals sell Settlements and Lottery Winnings. Now let’s discuss those income streams.
A structured settlement, or an annuity as it is sometimes called, is an income stream that is paid by an insurance company to an individual as the result of a personal injury lawsuit, medical malpractice suit, wrongful death, or any other type of liability settlement. When someone is involved in a personal injury lawsuit, they are sometimes offered a large amount to settle the case. This amount is usually paid out over time by an insurance company. The annuitant or beneficiary, as they are referred to, receives the money in either monthly or annual payments or a combination of both. We can provide a lump sum for these future payments.
Lottery winnings are either paid out in a lump sum of cash or over a period of 20 to 25 years. Someone who wins $1,000,000 dollars may only receive $50,000 per year for 20 years. This is a lot of money, but most lottery winners run into financial problems eventually and will need a lump sum of cash to help them out. It is a known fact that many lottery winners go bankrupt within three years of winning their prize. The time will come when a lottery winner will need our services. Now let’s examine the Steps to Success!
TIPS FOR GETTING SET UP AND STARTED WITH YOUR BUSINESS:
The first thing you will want to do is to set up a phone line with an answering device or voice mail. The phone line is the life line of your business. You may use a cellular phone in place of a traditional land line if you prefer. If you choose to do this business on a part-time basis, an answering device will be a necessity. While you are at work during the day, people will call to obtain quotes. You will either want to retrieve your messages during the day and return your calls on your break, or return all of your calls in the evening when you get home. Many part-time Agents work this method very effectively. The key is to have a professional-sounding message. We recommend something like this: “You have reached the voice mail of John Smith with (the Financial Solutions Group).
I am sorry that I’m not able to take your call at this time. Please leave your name and telephone number at the tone and I will call you back promptly.” It is important to maintain a professional image at all times with your clients. This consists of returning calls promptly, answering the telephone professionally, and most importantly not having background noise when you are on the telephone. If you work from home and have small children, it is very important that they are not heard in the background. Your next objective is to set up a business email that looks and sounds professional. If you have a website then you can tie your email address to your website domain name. If not, then you may use a gmail, yahoo or similar email. The next step is to make sure you have a method of sending and receiving documents. We want to make sure we can accept all documents via email so you may either scan and email or fax documents for processing.
_____ Set up a phone line
_____ Answering device - Voice Mail
_____ Set up business email
_____ Make sure you can send and receive documents
_____ Set up a website (optional)
_____ Choose your company name
_____ Print business cards / letterhead / create logo
_____ Sole Proprietorship or Corporation
_____ Decide which Cash Flows you want to focus on
_____ Send in Referral Agent Agreement
_____ Make copies of quotes sheets and have them ready by your telephone