ALL ABOUT NOTES
NEWSLETTER – May 2025
Welcome to Peak Notes first monthly newsletter. Our newsletter’s goal is to provide valuable information about how to manage your seller finance note.
Years ago, you created a seller financed note that was the beginning of your investment journey. Our hope is that this newsletter will help you to gain more knowledge about notes that will allow you to reach the maximum value of your investment.
MONTHLY FOCUS ITEMS
What is Seller Financing?
If you have ever had a mortgage, I am sure you have envied the bank receiving your monthly payments. Did you know you could use your own property to become a “private bank” and reap the same rewards as your local bank. Seller Financing is the answer.
What are the steps to set up your Seller Financed Note?
Hoping to stand out from the crowd, sellers are advertising “Seller Will Finance!” Accepting payments over time provides buyers an alternative to bank financing. Of course, sellers don’t want to trade a house that won’t sell for a buyer that won’t pay. Before you agree to “Be the Bank” read these 7 Steps For Safe Seller Financing!
What are two steps to preserve the value on your Note?
So, your borrower is making their monthly payments, and you are feeling satisfied. In the Seller Financing world, there is a quiet secret that most owners of a Note forget….to check taxes and insurance. These two items are so critical that if not paid you could be left with nothing! There are very easy safeguards you can put in place to maintain your investment.
BEST PRACTICE TIPS
Set Interest Rate Above Market
For Seller Financed Notes, set the interest rate a minimum of 2% points higher than market.
Remember you are a “private bank”…do not sell yourself short!
Check Property Taxes
Go to your county property tax site and confirm that all current taxes are paid.
Unpaid taxes can lead to liens or forfeiture of the property.
Make a Copy of Check
When you receive your monthly payment, make a copy of the check and store it with your Note.
Proof of Payment is the first thing you need when you sell.
MARKET NEWS * (05/08/25)
Mortgage Rate Update
Mortgage rates stayed flat this week. At this time last year, the 30-year fixed rate mortgage was 30 basis points higher and purchase application were declining. Today, rates are lower and have remained stable for weeks, sparking continued increases in purchase applications.
* Source – Freddie Mac
We hope you have enjoyed our first newsletter and found some interesting items to help you and your investment in Notes!
Our goal is to combine some insight, helpful tips and market information in an easy to read monthly newsletter. Through our years working with Note owners, we have found that most Note owners do not have a real source of knowledge or updates about managing their Note after closing. If there are topics you would like us to cover, click on the email link below.
THE PEAK-NOTES TEAM
John Knoblich
Karen Worthington
CONNECT WITH PEAK NOTES
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