Structuring a Seller Financed Note

 

Are you considering creating your own note? 

Seller Financed Note Criteria

Do you want to maximize your note’s current and future value?

Do you want to increase your note’s potential salability?

Note buyers evaluate the value of a note based the note terms and the records accompanying the note.

Here are our suggested criteria for structuring a note:

Residential Property

  • 10% CASH Down Payment

  • 9% Interest Rate or higher

  • 30 Year Amortization

  • 7 Year Balloon

  • 650 Buyer Credit Score or higher

Commercial Property

  • 20-30% CASH Down Payment

  • 10% Interest Rate or higher

  • 30 Year Amortization

  • 7 Year Balloon

  • 675 Buyer Credit Score or higher

  • Minimum 1 Month of Seasoning

Land Property

  • 30-50% CASH Down Payment

  • 12% Interest Rate or higher

  • 30 Year Amortization

  • 7 Year Balloon

  • 700 Buyer Credit Score or higher

  • Minimum 1 Month of Seasoning

Business Notes

Unlike notes on real property, business notes do have strict minimum requirements. If you would like your business note to be considered for future sale, it must meet these criteria:

  • 30% CASH Down Payment

  • 9% Interest Rate or higher

  • Fully Amortized

  • No Balloons

  • 720 Buyer Credit Score or higher

  • Personally Guaranteed

  • Minimum 3 Months of Seasoning

 
EPIC Notes