The main reason why an owner of a property will sell with owner financing is to earn more money on their money. The most common reason is when a buyer can not qualify for traditional financing. The benefit to the seller is that they can often get a higher rate of return on his/her money.



Another option is that a seller can have a buyer qualify for a traditional first mortgage on part of the sales amount, and then offer to take back a second mortgage to cover the balance. This often lets the seller get a higher price for his property, while letting the buyer still qualify for a mortgage.

If an owner sells a property with owner financing the owner is basically considered the mortgage company. But what happens if the seller who is holding a note and collecting monthly payments from his buyer decides that he/she wants to now use the money for something else, some other investment or financial need, or simply decides that collecting payments is not all that fun? Often times they want to sell the note.

Some note-owners have no idea that they can get cash for their note (discounted of course) or they do not know where to start. As a note broker your job is to introduce note buyers and note sellers and collect a fee for your service.

Popular ways to find those holding mortgages is to

1) Run a classified ad (in the Real Estate Services section of your newspaper) looking for note holders or

2) Direct mail or

3) The World Wide Web.

Use the public records of recorded mortgages to find those who are carrying a note. Since all mortgages and trust deeds are filed in the county clerk's office this information is available to the public. Next, where do you find buyers for these notes? The same way actually; use ads, direct mail, and the web.

Lastly, the internet has made research in general and this whole process even easier now than ever before. You can simply type note holder or note buyer or note broker into your favorite search engine. Look through the results, read and find out how each of their programs work. You can find buyers, find sellers and of course make sure you know how you (as the note broker) will get paid when you broker a successful deal.