What is a "Simultaneous Closing", and how can it help me sell my real estate? Simultaneous closings or “Table Funding” is where an investor purchases your newly created private mortgage note simultaneously (or later that day), when the real estate purchase goes to closing. In this instance, the real estate or business seller has the option to offer potential buyers owner financing, which will increase the number of interested buyers, offer seller/buyer flexibility, avoid stringent lender guidelines for buyer, and allow the seller to sell at his or her desired price, or in some cases more! |
If my note balance is $100,000.00, why is there a discount in pricing if I sell it? The answer is: the time value of money. Dollars in the future are worth less than dollars in your hand. For example, suppose you are offered your choice of a $100 bill or $1000 bill. You can have the $100 right now, but if you choose the $1000 you'll have to wait a month to get it. Almost everyone will choose to wait for the $1000. Suppose you can have the $100 now, but have to wait a year for the $1000? Or 5 years? Or 10 years? At some point you'll say, "I'll take the $100 now." At that moment you've just discounted a $1,000 bill to $100. Selling your note versus borrowing from a bank. Which one gives me the advantage? Even though you won’t get the full value of your contract, a cash flow note sale is still more profitable. There is a concept called "the time value of money", which says that your money’s present value is always more than its future value. This is because you can invest your money now and start earning interest. By the time the note is paid in full, you would have earned the difference with your investment – and with much less risk. A cash flow notes' sale can also be more convenient than a bank loan. You can sell your note in two weeks or less, while a bank will make you wait up to a month as they review your case, assess your credit, and do a dozen other checks. Of course, with ACFE, there will be no obligations, since you will be selling, not borrowing, without creating debt! |
What is a Partial Purchase? A partial purchase or a "partial" allows an interested party to buy or sell only part of a note. This maneuver is a transaction in which the owner of a cash flow sells, and a buyer purchases, less than the entire indebtedness owned by the seller. Using this "partial purchase" technique, private mortgage sellers and investors can have their cake and eat it too. Why should I sell my cash flow now? Selling your cash flow would enable you to fund an education, pay bills, family vacation, medical emergency, divorce division/fees, investments for further securing your future financially, all very good reasons for requiring a lump sum of money. Many Americans are not aware of this option. The option of selling your private cash flow instrument allows an investor to purchase your future payments for cash today. This process usually takes 2 to 3 weeks, assuming nothing unusual surfaces in the process. |
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