Commercial Seller Financed Notes and Private Paper have a very Usefull Purpose in Bringing a Transaction to Closing. In many Instances First Position Seller Financed Notes or Private Paper may be the ONLY way to Close the Transaction. Standard Banking would not Fund the Deal for numerous reasons. At Robert J Taylor & Associates, Boca Raton, Florida, we are here to help the Transaction Close in any way we Can.
First Position Seller Financed Notes and Private Paper are used in Transactions involving Business Sales where there are Fixed Assets and an ongoing business but Real Estate may or may not be part of the Sale. The Buyer or the Sale may not Qualify through Traditional Banking methods for a verity of Reasons Therefore, Seller Financed Notes and Private Paper come into play to make the Transaction Close.
The Transaction is Closed now, The owner of the Seller Financed Notes and Private Paper wants to Cash out their Revenue Stream. What to Do ? There is a Solution, Seller Financed Notes and Private Paper can be Sold as Partial, Split Payment or in Full to a Buyer of these types of instruments if they have been Executed properly. This is where the Holder of the Revenue Stream needed to do their Homework in the Preperation of the Private Paper prior to Execution.
The object of Getting these types of Instruments sold will depend on numerous factors. Above all is the Quality of the Private Paper, the Risk taken on, the Yeild to the Note Buyer, the Term and Rate of the Seller Financed Notes and Private Paper and the Strength of the Debtor. Usually the Rate in these Instruments is somewhat higher then a Bank. The Higher the Rate and Shorter the Term is what a Buyer is looking for as well as Seasoning (payment history) and a Personal Guaranty by the Debtor. These Factors will usually Determine the Discount the Buyer will want in order to purchase the Private Paper. Among other things The Purchaser of the Seller Financed Notes will be looking for in the Private Paper may be The ability to pull Credit on the Debtor from time to time and the Ability to obtain a Certified Audit of the Business producing the Revenue Stream that Pays off the Note.
The Discount on Seller Financed Notes and Private Paper will Vary due to reasons as mentioned above. Depending on the Quality of the Private Paper, The Discount can range from 10% to 25% and Higher. The More Risk, the More Discount.
As we can see Seller Financed Notes and Private Paper can be a Powerful Tool to Bring a Transaction to a Closing. They are also an Asset for the holder of these types of instruments. It allows the holder to have a steady Revenue Stream, a Lump Sum Payment, a Partial Payment or a Split Payment. At Robert J Taylor & Associates, we can make this type of Seller, Buyer, and Broker arrangement work to make the Closing a Reality.
Our Associates are among the Rarest and Fewest in the Industry. They are standing by to work with US to Fund Your Private Paper and Seller Financed Notes. Depending on the Quality of the Seller Financed Notes and Private Paper, the ability of a Simultaneous Closing is also a Reality. The Private Paper is Executed at Closing and Sold to our Associate at the Same time. Without Seasoning.
It is Very Important to Prepare these Types of Instruments Properly in Order to have the Ability to Sell Them in the Future. OnceAgain,
If You Don't ASK, the Answer is Definately NO !
