Owner Carryback Financing

Dyches Boddiford

Buying and Selling Using

Owner Carryback Financing

"Owner Will Finance"

Those are magic words. Even in a market where institutional interest rates are low, those words will get the phone ringing. Whether you are buying or selling, you need to understand how to get this financing or take back financing yourself without getting taken!

This class will be of interest to Buyers, Sellers, Real Estate Agents, Note Brokers and Note Investors. We will consider the difference in terms and financing you would want as buyer versus those you would want as seller. We will also discuss how selling and carryback financing can benefit the investor who wishes to retire from day-to-day management.

Optional Monday Workshop, August 20 – Eddie Speed, a nationally renowned note buyer, will
show you how to structure your note and mortgage in today’s marketplace to sell quickly and for the highest price! Only $69 per person with pre-paid sign up for the Owner Carryback Financing Seminar thru July 31, $129 after that time. Don’t miss this opportunity!

Below are just some of the topics we will cover.

  • Getting a Higher Price for the Property while Selling Faster
  • Difference in Balloons & Calls – when to use each
  • WRAP Notes & Mortgages
  • Lease-Options, Lease-Purchases & Land Contracts as financing tools
  • Terms & paperwork depending on whether you are Seller, Buyer, or Note Buyer/Broker
  • Clauses to include in Note & Mortgage
  • Interest only, normal & negative amortization
  • Getting Seller to give you 0% financing
  • Tax reporting – installment sales1098, 1099, Section 121, dealer sales, capital gains, SE tax
  • How to Purchasing Subject-to
  • Dealing with Insurance
  • “Nothing Down” v. “No Money Down”
  • Getting Guarantors/Co-Signors
  • “Abandoning” the Collateral and suing on the Note as alternative to a Deficiency Judgment
  • Collections & alternatives to foreclosure
  • “Walking the Mortgage”
  • Additional Collateral
  • The relationship of Price & Terms
  • Discount for early payoff & lump sum payments
  • Substituting Collateral
  • Dealer property issues and owner financing
So, what is so hard about owner carryback financing? Can’t a real estate attorney draw up the paperwork based on the terms on which we agree? Sure. But if you want to control the deal, letting an attorney use generic or, worse, Fannie Mae forms, is not what you want. Do you know how to negotiate discounts both on mortgage notes you are collecting

and on those you are paying

to increase your rate of return?

Do you know the tax issues involved with owner financing? These can be used not only to put more money in your pocket, but can be used to negotiate a better deal. And real estate investors who quick-turn property need to understand taxes to make sure they have enough funds to pay taxes at the end of the year—on both the buy and sell sides.

Investors who have decided they want to take it a little easier and sell off part of their holdings can use owner carryback financing as an investment to gain a higher return and postpone paying taxes. Thus, they are using the tax savings to generate even higher returns. We will discuss the clauses that the loans must contain to protect the seller in case of a default as well as general interest rate increases in the market.

This can also be a great investment for those who recognize the security of real estate, but don’t want to deal with tenants. Understanding and using Wrap mortgages, an investor can increase their returns even with moderate interest rates.

Optional Monday Workshop

The weekend presentation will provide you with all the information you need to make a solid, profitable loan arrangement with great documentation. It will be geared primarily to the investor who will hold the note and mortgage as an investment. But what about those who want to sell the financing once it is put in place? That is the objective of the Monday workshop.

Eddie Speed has 25 years of experience in note purchasing. In that time, he has handled over $500 million in notes! He has his finger on the pulse of the industry and will share his knowledge in how to structure your financing to make it sell for the best price in today’s marketplace. He was instrumental in the development of HomeVestors’ owner-finance program as well as many other real estate companies. Even public REIT’s listen to his advice.

What affects “discount” when a note and mortgage are sold? If you want to structure financing to be sold…either owner financing when you buy or when you sell…, you need to hear what an actual note buyer looks for in determining what price to pay.

In addition to what you learn during the weekend class, Eddie’s presentation will prepare you to craft financing that can be readily sold in the marketplace. Take advantage of this opportunity now! Special early registration price when you sign up for the weekend class of just $69 by July 31st.

Name Sales End Price
Pre-registered Ended $479
Multiple Pre-registered Ended $429
Regular Registration Ended $514
Multiple Regular Registration Ended $464
Monday Workshop Special   Ended $69
Monday Workshop   Ended $129
Monday Workshop w/o Seminar Ended $149

On the Web

Explanation of Owner Carryback Financing | eHow

Owner carryback financing is an alternative form of financing that is typically used in real estate deals when the buyer cannot qualify for a traditional mortgage.


Seller Carryback Financing | The Truth About Mortgage.com

Seller carryback financing is basically when a seller acts as the bank or mortgage lender and carries a second lien on the subject property.


Owner Carryback Mortgages | LegalMatch Law Library

Nov 15, 2012 · Easy to understand legal info for non-lawyers. An owner carryback mortgage is a type of lending arrangement wherein the owner of a house finances the ...


Allie Mae: Seller Carry Back Financing - A Consumer's ...

Seller Carry Back Financing. So, your property is on the market at present and your Realtor has suggested that you should consider carrying a ...


Definition of a Seller Carryback Note | eHow

Seller Carryback Financing. With a seller carryback arrangement, the seller of a house takes back a portion of the debt on the house and allows the buyer to make ...


For Sale By Owner: Owner Carryback Financing and …

For Sale By Owner Financing: Helping American FSBOs sell fast at full appraised value with owner financing and professional consulting.


Owner Financing or Carry-Back Loan - Trulia

An owner financed or carry-back loan is when the seller usually owns the property outright and is willing to either hold the loan themselves, rather than a bank, or ...


What Does Owner Carry Mean in Real Estate Terms ...

What Does Owner Carry Mean in Real Estate Terms? by Steve Lander. ... The Truth About Mortgage: Seller Carryback Financing; REI Club: The Forgotten Owner Carry;


Owner Will Carry - Why We're Different

Seller carryback financing works in EVERY state. ... "Owner Will Carry" or "Seller Financing" are magic words that make almost anything of significant value MORE ...


Seller Carry Backs: Finance a Home Without a Mortgage ...

A seller carry back is simply owner-provided financing. You may also see this advertised as seller financing or owner will carry (OWC).


New Seller Carry-Back Financing Rules - Combs Law Group

As anticipated, some of the new Dodd-Frank rules will now apply to any financing provided on owner-occupied housing, including seller-carry backs.


Owner financing: A win-win deal for both buyer and seller

Owner financing happens when a property buyer finances the purchase through the person or entity selling it. It offers benefits to both buyers and sellers.


Seller Carryback Financing and Anti-deficiency Laws

This is a classic scenario where seller carry-back financing becomes more attractive to the buyer and the seller. How does seller carry-back financing work?


OwnerWillCarry.Com | Owner Financed, Lease Option, Rent …

Owner Financed, Lease Option, Rent to Own and Foreclosures for sale nationwide . Skip to content. Home; Sample Page; This is your caption's title


Buying a House With Owner Financing

Owner financing buyer can avoid difficult bank processes, and the seller can create a monthly income stream with added tax advantages.


Dodd-Frank Act Qualified Mortgage Rule Impacting Seller ...

Dodd-Frank Act Qualified Mortgage Rule Impacting Seller Carry Back Financing. by Scott M. Drucker, Esq. on February 7, 2013


Discounting Seller Carry-Back Mortgages - About

Selling a purchase-money carry-back mortgage to an investor. About seller carry-back mortgages, benefits to home seller to carry financing and how to sell the carry ...


How is owner financing or carry back loan useful?

Owner financing or carry back loan is useful because: It is a good source of income and helps to sell the property quickly as there is no fixed criteria for buying it.


Owner/Seller (Carryback) Financing - Landlord Software: …

Learn the Power of Using Owner/Seller (Carryback) Financing Techniques and Strategies Make More Money, Move Property Faster, Take Less Risk. April 25 & 26, …


Owner Financing – 10 Advantages to Using the Seller ...

The word is out and seller financing is on the rise as buyers and sellers look for creative ways to finance property in the struggling market.


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