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What is a
Privately Held Mortgage
or Trust Deed
By: Jared More
While the privilege of home or
business ownership is probably one of the largest investments we'll ever make,
very few people are using this fact to their advantage, especially if they've
sold their home or business and are receiving payments on a mortgage or trust
deed!
In today's featured article, Jared More briefly describes a few of the many
pitfalls unsuspecting homeowners or small business owners face when approaching
banks to buy a portion or all of their mortgage note or trust deed. There are
however private companies and
investors who will work with homeowners, small
business owners and commercial business owners with privately held mortgages and
trust deeds to give them the cash they so desperately need. And the best part is
that they're just one mouse click away!
Take it away Jared.
Anybody who owns a house or a commercial property is
familiar with mortgages. Nearly all real estate transactions are handled with
financing. Rarely are real estate purchases paid for entirely up front.
Generally the purchaser makes a down payment to a financial institution and the
institution finances the balance with the property owner. This common way of
managing real estate investment is certainly the most popular and familiar
method. However there are alternative ways of receiving the financing you need
to buy a property.
Privately held mortgages also referred to as trust deeds are becoming more
popular due to the added flexibility afforded by having interest rates and terms
agreed to with a private funding source rather than having to adhere to a
financial institutions lengthy, confusing and ever changing terms and
conditions. Also in the end the bank makes more money from your investment while
you end up having cash tied up for the term of the loan.
Selling mortgages to a private company creates financial freedom because most
private mortgage firms will offer you a lump sum cash payment which you can
immediately invest and begin to accrue interest on, allowing you to use your
property to increase your wealth. Due to inflation it is often a better
financial decision to have a lump sum of cash today which may or may not be less
than the properties actual value. The larger the cash sum you have the greater
the buying power and investment potential. In the end more money is made with
cash on hand rather than small amounts invested over decades. In addition
selling your mortgage to a private company eliminates the debt created by a long
mortgage and saves you cash by doing away with years of interest payments.
Depending on the amount of money
you wish to generate most companies offer several options. A few examples:
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Balloon Purchase - If
your mortgage or trust deed has a final balloon payment, the company can buy
some or all of that balloon payment, and then you either sell or retain the
remaining portion of the balloon payment.
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Multi-Stage Payout -
At closing, you'll receive a lump sum of cash, plus you receive a guaranteed
payment at a set future date.
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Reverse Partial Purchase
- At the closing for the sale of future payments you receive cash, plus you
get the next up front (number) of payments when they are due.
-
Split Partial Purchase
- At closing for the sale of just a part of each of the future payments
you'll receive cash, plus you get the remaining part of each payment when
due.
Selling your mortgage to a
private company can be a great way to generate that extra income you need. The
great thing about receiving the cash for your property is that you can use that
lump sum for anything you want. You are not tied down by a financial
institutions or a complex list of terms and conditions.
Selling to a private company is also easy, and straightforward. The best
companies to work with will make you an offer you can count on. The companies
you want to work with will guarantee you will receive 100% of your offer and
will pay all closing costs themselves. If you want to have a lump sum payment
for your property and free yourself of your mortgage consult with a private
investment company today.
Written by Jared More for Entourage Holdings, for more information on privately
held mortgages and trust deeds or to contact a representative please visit
http://www.entourageholdings.com or call 1-800-230-0869 and a member of our
knowledgeable staff will help you make the right decision for financial needs!
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