This article will be an introduction to the "Secondary Market." This alternative means of financing that is not known by many people versus the traditional Primary market . The Secondary Market buys and sells "Notes" which generate the funds to finance property sales.
In the first article I suggested that owners and realtors add " Financing Available" to their ads and signage, and put their prices back up to what they wanted for the property. A few savvy Realtors, called to make sure the "note funding" was not competitive with them. The answer is NO it is not.. To the contrary, Note funding is an alternative funding source for the Realtors. The Note buyer has no association with the Realtor/ client normal course of business other than to provide the funds. for the closing and buying the mortgage note.
That article generated a number of responses from readers with questions and comments, all of which I appreciate. Many property owners and Realtors said that after they added "owner financing" or "financing available" to their ads and signage, their property inquiries increased substantially. Several had also had gotten offers based on the prospective buyers seeing "Owner Financing" on their signage and in their ads. Why? The prospective buyers didn't qualify for a traditional Lender's loan, but did qualify for the "Note" Company's funding. No banks are needed.
This is not deceptive advertising. The Note Company will furnish the funds. Of course you should be working with an ethical, secondary market company before you do this. I can recommend a number of companies for you to consider.
You should not have to pay any up front fees, or any cost for the note closing.
What is the "Secondary Market"?
Lets look at the answer to this question, in light of the lending and real estate markets, which are now in turmoil.
The Secondary Market, often called the "The Paper" market or the "Cash Flow Industry" are the names given to the buying and selling of income streams of cash in the Financial Markets.
This industry has been around for decades, and has EXPLODED. in the mid to late1990s, Primary Lenders have made billions of dollars worth of bad loans in recent years, making large profits for themselves. Now, they have lost billions of dollars, due to their bad judgement and inappropriate loans. This event has created financial disaster for many of unwary homeowners. They are now out in the cold being unable to purchase a home because of their damaged credit report. because they got duped in by unethical variable interest loans.
Many primary traditional lenders are noted by their expensive high profile advertisement, and are household names. Many of them cater just to their wealthy, perfect credit score customers and stockholders, rather the average guy who really needs help.
The forces of supply and demand created the cash driven "Note" Industry. It has been around for decades filling a void that has been left by the traditional Primary lending sources.
The Secondary Market doesn't spend millions of dollars on unnecessary advertising, but is constantly devising innovation solutions to solve ever increasing financial problems. The market consists of smaller more efficient companies, and can implement financial solutions much faster than larger more cumbersome primary market. There are a large number of wealthy private investors and entrepreneurs who furnish most of the funds, and their markets are open to everyone.
In addition to buying real estate notes they also buy Annuities, Court Settlements, Lotteries, Insurance Settlements, Medical Malpractice Settlements, Mobile Homes (with land), Raw land, Land with Improvements, (Utilities), Farm Land. annuities Viaticum Life Insurance Personal Notes, and Business Notes, They will also that pre-fund a plaintiff and attorney in a lengthy lawsuit, to defray cost and then buy part or all of the deferred settlement.
The "Secondary Market" is proving to be a blessing to millions of people who have found it to be a real, legitament, ethical Industry, that has solved many of their financial problems.
ABOUT THE AUTHOR:
Louten Hedgpeth is a Certified Financial Planner, (Ret.), Note Advisor, and Author. He continues to provide "Solutions" for problems whose answers are not readily found in print, if at all. If you need help with any of the information in his articles or other financial concerns, you may contact him directly at 910 392 7122 toll Free at 1-866.261.5757 or email at Solutions@We-buynotes.com. No cost or obligation.