Discover how Chris from Texas increased his cash flow from $0 to $700 per month on one deal by converting the rental to a seller financed note in our video interview at the 2015 Paper Source Symposium in Las Vegas.
A look at how Dave Franecki of Capstone Capital is helping sellers successfully use owner financing in this Note Investor spotlight interview.
The Power of Partials
What are the advantages of a partial?
Another opportunity, one that is not well known is either buying or selling a partial. When an investor purchases all the remaining payments it is considered a full purchase. When an investor purchases just a portion of the remaining payments it is considered a partial purchase. In effect it is a 1st on a 1st. Once you have bought one cash flow, it’s easy to go to the performing payor and negotiate the next stream since the paperwork done on the initial deal saved. Typically the buyer of the partial gets paid before the assignor gets theirs. If the collateral is sold or goes through foreclosure the remaining balance goes back to the partial note buyer then to the partial seller.
A partial purchase can help minimize the discount but it comes with the worry of the buyer keeping payments current in the future. For the partial buyer it is like having a 1st lien on a 1st.