Real Estate Cashflow Advisors FAQs

Frequently Asked Questions

 

Why doesn't everyone use your Temporary Seller Financing^TM and put the banks out of business?

Temporary Seller Financing^TM works best on properties that have at least 40% equity, and you can leave the existing debt on the house. If there is a large loan already on the house, then your Finance Consultant must create a wrap note that you can sell.

For sellers who need all of their cash immediately, Temporary Seller Financing^TM is not the best option. For those who want a lump sum immediately and cash in the future, or who want a premium price for their property, or who are considering selling to a buyer who can provide strong cash flow, then the Temporary Seller Financing^TM choice is excellent.

 

Who are the investors who buy the notes created with Temporary Seller Financing^TM?

They can be individuals who would rather invest in real estate than the stock market. Alternatively, they can be large institutional investors that buy existing loans and mortgages. Many are quite creative and can buy any part of a mortgage that you want to sell.

 

Will I have to collect and keep track of the monthly I am receiving from the homebuyer?

No! because the Temporary Seller financed note would be serviced by Click Here

 

Does Temporary Seller Financing^TM only work with single-family houses?

It also works with commercial properties, businesses, apartment buildings, and land. Work with me as your Finance Consultant, I can arrange to sell your secure cash flow to an institutional investor.

 

Can I use Temporary Seller Financing^TM without working with a real estate broker?

Yes, A good Finance Consultant will more than earn their fee by showing you how to expose your property to many more buyers than you can. Your Finance Consultant will provide a 3^rd party Mortgage Loan Originator (MLO) to handle the complex paperwork and disclosures involved in completing a sale. The MLO will make sure that the home buyer complies with the Dodd-Frank Act, to make sure that the home buyer can afford the mortgage payments and pay back the loan. They can help you avoid costly mistakes as well. Also, the funds from the down payment and the note investor pay the Finance Consultant's fee and other closing costs.

 

My mortgage loan has a "due on sale" clause. If I don't pay off the loan now, will the mortgage company foreclose?

About 99% of all mortgage loans have a standard “due on sale” clause written into them. That gives the lender the option, but not the obligation, to accelerate the loan and get paid off. When the loan payments are kept current, the last thing the lender wants to do is stop that cash flow and gain a liability of a non-performing loan or worse, a vacant property. Thousands of houses have been bought subject to the existing loan, and the lender has allowed the conveyance.

Lenders are in the business to receive payments on their loans, not take back properties, especially properties with low or no equity, or properties that require a long time on the market to find a highly qualified buyer to deliver all cash at closing. It just doesn’t make financial sense for lenders to cancel that income stream, kick out the owners, and take back a vacant non-performing property.

Lenders have credit scores, too. Taking back too many foreclosed properties damages their credit and impairs their ability to make new loans. Lenders DO NOT WANT the property, especially when the payments are current. Lenders WANT THE PAYMENTS.

Lenders will often package their loans for sale in bulk to Wall Street. Wall Street wants steady income, not vacant non-performing properties. With over one million properties foreclosing each year for default, why would any lender want to foreclose on a performing loan and further damage their own credit?

 

How do I know that my note will be bought, and how safe is Temporary Seller Financing^TM?

All transactions are done through an escrow company with a title insurance policy. You have all of the safeguards of a traditional sale, and you can change your mind about selling the cash flow at any time during the process. Temporary Seller Financing^TM was developed to help you sell your home quickly and for top dollar. It is a safe and legal method of helping sellers such as you.

In some situations, you may need to receive one monthly payment, and then the note is sold to a 3^rd party note buyer. There are many variables in a note transaction that determine what the note is worth. As your Finance Consultant, I can help answer your questions and guide you through the process.

 

What happens if the homebuyer stops making payments on the note?

All homebuyers are required to purchase and maintain Mortgage Protection Insurance, which covers Job Loss, Temporary Unemployment, Hospitalization, and Accidental Death.

 

Can I still get another mortgage loan to buy my next property when this mortgage loan is still in my name?

The short answer is YES. Mortgage lenders will see the existing loan on your credit report, but will consider it a sale rather than a liability. As long as you have good credit, which is always required for mortgage loans, they will not count this loan against you as a debt, they will not discount your income from the note as they would when you rent out the property, and it will not affect the amount that you can borrow for your next purchase. You own a cash flow instrument that completely offsets that debt. You can confirm this by calling any mortgage lender and asking them about it.

 

Why would a potential home buyer agree to pay an above-market interest rate, and why don’t they just go to a bank?

The home buyer is provided with the convenience of putting down a much smaller down payment. They would have a fixed rate, and won’t have to pay any bank points, and they can have less than perfect credit.

If your property qualifies, Temporary Seller Financing^TM is your key to a quick and profitable sale.

 

Do you work with individuals selling homes for sale by owner?

Yes, we specialize in assisting individuals who are selling their homes without a real estate agent, offering guidance on seller financing and cashflow management.

 

What types of properties do you work with?

We work with a variety of residential and commercial properties, providing tailored solutions to meet the unique needs of each client.

 

How does seller financing compare to traditional financing?

Seller financing offers flexibility and unique advantages for both buyers and sellers, making it an attractive option in certain real estate transactions.

 

What sets Real Estate Cashflow Advisors apart from other consulting firms?

Our team combines expertise in real estate, finance, and consulting to provide comprehensive solutions tailored to each client's unique needs, ensuring a personalized and effective approach to cash flow management.

 

How long will I have to carry the temporary seller-financed note?

We structure the note transactions so that the for-sale-by-owner client has all of their money in 12 years or less.

 

Do I have to physically collect the monthly payments on the note?

No! you do not have to worry about servicing the note because it would be serviced by a 3rd party note servicing company.

 

My home has an existing mortgage on it. Will the mortgage get paid off at the close of escrow?

Yes! 

 

Is there a fee associated with working with you?

Yes, our fee is paid at the close of escrow after your home has been sold to the new home buyer.