Real Estate Note Owners Biggest First Mistake

Real Estate Note Owners Biggest First Mistake



Real Estate Note Owners Biggest First Mistake
The single most common mistake that a​ note holder makes when creating a​ note is​ that they fail to​ check their buyer’s Credit Report .​
It seems so simple, but it​ is​ worth repeating Most people fail to​ check the​ credit report of​ their prospective buyers!! Can you believe this? Just by doing this one simple step can save you a​ bunch of​ money now and​ in​ the​ future .​
How so? First and​ foremost by checking your potential buyers credit score can help resolve your worries of​ your buyer’s ability to​ repay their future debt to​ you .​
Heck, I​ don't know of​ any bank that would not check the​ credit score of​ any one of​ their customers seeking a​ mortgage .​
So why shouldn’t you?
The second benefit of​ checking your buyer’s credit score is​ what if​ you should ever decide to​ ever sell your real estate note, trust deed, or​ owner financed mortgage for​ all cash? By knowing your buyers credit score would not only benefit you now, but it​ would also make your real estate note more valuable in​ the​ future.
Here's why .​
The first thing a​ promissory note buyer/investor is​ going to​ require to​ sell your note is​ your payer’s credit score! Your buyer’s credit score is​ paramount to​ how much money you will ultimately receive for​ your real estate note .​
Of course the​ higher the​ credit score the​ less risky it​ is​ to​ a​ perspective promissory note buyer, thus making your note more valuable to​ them and​ ultimately you .​
So, just what is​ an​ acceptable credit score concerning a​ real estate note? That is​ entirely up to​ you, but if​ it​ was my note I​ would not accept a​ score of​ less than a​ 550 .​
The credit score counts for​ 40 percent of​ a​ total of​ 100 percent in​ rating your real estate notes value .​
So whether you are creating or​ selling your real estate note it​ pays to​ get your buyers credit score in​ more ways than one.




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