JBC CAPITAL
We buy Real Estate Notes and Mortgages, Trust Deeds - Contract for Deed - Deed of Trust & Land Contracts
SELLER TIPS
10 Tips for Creating a Real Estate Note
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Down Payment: Whenever possible, require a down payment of 10% to 20% to reduce the risk of default. |
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Check Buyer's Credit: Always require the buyer to complete a credit application and obtain a current copy of their credit report. Poor credit may require a larger down payment to protect your property. |
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Repayment Terms: All terms of a seller financed transaction are negotiable between the buyer and seller. The structure of the contract directly affects the cash value of your contract. Generally, the higher the interest rate, and the shorter the term, the greater the cash value of your contract. |
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Title Insurance: Any time you purchase or sell real estate, you should obtain title insurance. This will identify any items recorded against your property that could affect your lien priority. |
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Due on Sale Clause: This ensures that you will be paid in full if your property is resold. In lieu of a due on sale clause, require that any assumption of the buyer's interest is subject to your written consent. |
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Taxes and Insurance: Review the contract to ensure it contains a clause requiring the buyer to maintain adequate insurance on the property. In addition, the contract should specify the buyer's responsibility to pay real estate taxes after closing. |
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Mobile Home Title: If the property you sold includes a mobile home, contact the local Department of Motor Vehicles to ensure you have the proper documentation to transfer the mobile home title. |
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Closing Agent: Always use a licensed third party to close your transaction. This will ensure your transaction is closed properly. |
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Payment Collection Agent: We recommended you employ a licensed escrow company to manage your real estate contract. They will perform numerous functions in a professional manner, including calculating the principle and interest for each payment, sending out monthly and annual statements, reserves for taxes and insurance, IRS reporting, and document safekeeping. |
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Contact JBC Capital: We are your seller financing experts. |
