Note Queen: Owner Financing Strategies

99% of sellers who end up 'offering terms', 'carrying back paper', offering seller financing have NO IDEA that there are people who would want to buy the note they just created... that promissory note represents a stream of income, like an annuity.

Only it's a private annuity that someone creates that is secured by the property they just sold. And investors like to buy income streams.

I want to be the prenatal care, the midwife for these seller financed transactions. That way the seller is assured that the note will be worth holding or selling.

Sadly, they won't be educated by their attorney, title company or real estate broker.

They find out a few weeks after the closing when they start receiving letters and postcards in the mail.

99% of people who carry back a loan / offer owner financing to a buyer, have NO IDEA that there are people who would want to buy the payment stream they are creating... their private 'real estate annuity' secured by the very house they just sold.

They won't hear it from their title companies, their attorneys, their CPAs, their real estate brokers...

They find out several weeks after closing when they start receiving letters and postcards in the mail asking if they want to sell their 'note.'

By then, the value of the note is already baked in.

I want to be the prenatal care in those seller financed transactions so that the note is 'born' healthy and worth holding or selling for the highest possible price.

"... WHA, wha wha WHA, wha WHA..." (think Charlie Brown)

That's what I sound like to regular "normal" people who haven't been around the real estate and note investing world for decades.

When you've worked for so long in an industry, it can be easy to inadvertently start speaking a language that most people don't understand.

That's why I've invested so much into marketing with language that reaches the people I want to reach... tired landlords in particular. Secondarily real estate agents.

Agents need to serve their clients well and save commissions. Seller financing strategies implemented in a fully compliant way is a way to do this when a listing is getting ready to expire

I've created materials to help you do what I'm doing, because I want all of us to win.

There are several examples you can download for free inside of my free community: Citizens of the Realm. Sign up at my.notequeen.com

A more complete set can be purchased at https://notequeen.com/shop

A few files are editable, but the attention grabbing professional flyers created in Canva... those cannot be provided in editable format due to the platform's restrictions.

However, I can have my designer personally customize them for you for a reasonable fee based upon what you want and need.

Seller won't give you a discount on the price of the property? Here's the back door way to get it anyway.

If you get 0% interest, it's the equivalent of paying .65 cents on the dollar.

Seller gets their price, you get your terms.

There ARE sellers out their who accept 0% financing every day. Everyone has their reasons and what's important to them.

It absolutely thrashes the value of the note on the secondary market, but the seller got the price they wanted and the monthly cash flow that worked for them.

The process of closing a seller financed transaction is often misunderstood.

Do you need a special seller finance broker? A special escrow / title / closing attorney?

It is sometimes easy to assume that if a buyer isn't getting a bank loan or paying all cash, that the closing process is radically different.

Yes, there are some important considerations unique to a seller financed transaction, but it is closed the same way, through the same professionals as any other transaction.

The primary difference is that there is no 3rd party lender / bank.

The seller is the bank, so the seller's name is on the promissory note and deed of trust or mortgage.

Do you need a special real estate broker?

Very possibly, yes... because an agent who doesn't understand it and isn't open to collaborating with a seasoned note professional can be a deal killer...

They can be such a great gatekeeper that you as the seller don't even see all offers that are (or would be) submitted.

I can help you find an agent in your area that understands owner financing and who would be open to working with me ... your Personal Fannie Mae Underwriter ;-)

Bring your questions to tomorrow's zoom!!

"Don't pay me off!!" That's how a lot of people who are collecting payments feel.

They don't want the tax hit of the payoff, so when their borrowers tell them they're going to refinance, many note holders will offer to match or beat the bank terms so the borrower doesn't pay them off and the note keeps generating that nice long term cash flow.

Has your CPA trapped you in your rental by giving you the tax bill?

Here's what they usually don't tell you... it's up to YOU to bring it up...

That 'the installment sale' is a perfectly viable and powerful option for landlords that are tired but don't want to write the IRS a big check after a cash sale.

I would guess about $70 billion in seller financed loans are made every year. That means thousands of owners are deciding that carrying back a note is a good idea.

And the sheer number of seller financed note (loan) buyers out there proves that these are highly valuable investments. Isn't it worth a little bit of time and effort to find out more?

See link in bio... Linktr.ee/DawnRickabaugh will take you to a place where you can easily schedule a 15-min complimentary conversation. No sales, no pitches, I'll just listen and help you discover what might be best for you.

Get inside the head of your clients and understand their pain. Not everyone wants to admit this out loud...

If you've owned rental properties for 20+ years, you've been pitched everything by everybody... and you're exhausted. In fact, you have a black belt in warding off advances, detest hype, and can smell BS a mile away.

People come at you with:

👉 Let me list your property
👉 Let me give you a low cash offer
👉 You should do a 1031 Exchange into another management headache
👉 Hey sell that thing and take what's left after sending the IRS their blood money and get into annuities.
👉 Honestly, you've resigned yourself to the fact that nothing is really going to work for you... so you keep climbing on the roof, taking that 9am text on a Sunday morning...

Of course those are reasonable options for many people, and...

The Installment Sale (Internal Revenue Code 453) is absurdly under represented as a viable exit strategy.

If you own rentals free and clear (or nearly so) and want to explore whether or not seller financing might be right for you without being sold something, let's talk:

https://calendly.com/dawn-rickabaugh/seller-financing-exploration

This is an age old strategy that was 'the way things were done' for centuries before the federal mortgage system was established in 1930. It's not some new-fangled thing.

If it were, why would the IRS have a tax code for it??

Why would so many sellers turn their rents into mortgage payments instead? I would guess there is about $70 Billion in seller carry back loans created each year. MANY seller financing transactions never hit the MLS.

You're tired, but there's no way you're going to give the IRS a third of what you've built.

You've been pitched 1031 Exchanges, but you don't want replace one headache for another.

Phone calls from the Phillipines and Pakistan, followed by low-ball cash offers... yes, that would reduce your capital gains alright, but yah... right...

Unless you don't want to kick your tenants out, rehab the place, or pay agent commissions, then yes, that could be a great option for you.

Your financial advisor wants you to sell, take the tax hit and buy insurance annuities.

Did you know you can CREATE YOUR OWN annuity? Turn your rental into an annuity and save big time on taxes.

Did you know that some of the wisest tax planning involves selling a property over time?

Oddly, most landlords never hear about this strategy from their Trusted Advisors. Even though it's been around for centuries and is used by hundreds of thousands of Mom 'n' Pop landlords each year.

Trust me, you CPAs, attorneys and real estate brokers know about it... The "Installment Sale" has been in the tax code for a very long time. (IRC 453). It's just that they don't generally bring it up to their clients for some reason.

Either landlords have planned their whole lives to trade their properties for seller carry notes to optimize retirement later in life, or they've never heard of it.

I'm here to bridge the gap. Schedule a free 15-min discovery session to see if seller financing might be right for you. Link in comments.