Whether buying or selling notes, understanding the players in a seller-financed transaction is key to profitable outcomes. Here are the five main players along with some standard industry terminology. Seller – Note Holder – Payee When a property seller accepts payments from a buyer over time using seller-financing, they also become the note holder, note owner, or payee. The payee … Read More
What is Seller-Financing?
Seller-Financing (or owner-financing) refers to a sales transaction in which the seller allows the buyer to make payments over time for the property being purchased. This “private” financing by the seller replaces the more traditional conventional financing offered by banks. There are many reasons why a seller might offer financing to a buyer. Perhaps the buyer is self-employed and can’t … Read More
