Are you considering creating your own Owner Financed Note? 

Note Criteria

Want to maximize your note value and potential salability?

What do you need to include in the owner financed 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

 

Still have questions?

Don’t hesitate to contact us for assistance in structuring your note!

 

 

Looking for Tips?

Learn more on how to structure a note.