How to Structure your Residential Real Estate Note for the Most Resale Value

If you're considering being creative and selling your home with owner financing your not alone. With the banks putting a strangle-hold on lending standards this will be one of the most popular ways of selling houses in the near future. Whether you're wanting to create a monthly income stream for yourself or sell your newly created note for a lump sum anytime after selling, you'll want to follow these simple guidelines.

1. 10% down payment for owner occupied buyer
20% down payment for non owner occupied(investor/2nd home)

2. Structure you note with interest of 9% or higher

3. Structure a note that amortorizes over 30 years

4. Struture a note with a 7 year balloon

5. Buyer needs to have a credit score of 625 or higher

6. Structure the note with a 1 month minimum seasoning period(this means that you have held the note for at least 1 month).

These guidelines will enable you to receive the most for your note. If you can get a bigger down payment that would go straight into your pocket and also make your note more valuable. These are only guidelines to make your note more valuable, if you choose to create it differently it will still be salable, only less valuable.