Are you a partner in  real estate or business venture in which you would like to "sell out"? Does your partner have the funds or financing options to buy you out directly? If the answer is no, then owner financing may be the solution for you.

How does owner financing work? In this situation, you would extend your partner the credit to "buy out" your part of the business or real estate, essentially creating a mortgage secured by the real estate or the business in question. You partner agrees to pay you his/her share of the sales price in monthly installments, at a reasonable interest rate, over the course of a specified number of years.

The advantages for you in this arrangement are:

• The ability to "sell out" as desired
• A secure investment, at a reasonable interest rate
• An investment secured by real estate property or a business with which you are intimately familiar
• Tax benefits
• A guaranteed monthly payment
• A liquid asset, in the form of a mortgage, which can be sold for cash, if desired

The advantages for your partner are:

• The ability to purchase the real estate property or business in question
• Less rigid lending requirements
• Lower closing costs

But, what if you need a large sum of cash now, instead of waiting for several years to collect all your money? No problem. The mortgage you created when you sold your part of the real estate or business is a liquid asset which can be sold for cash! You can sell all or part of the mortgage and receive a lump sum of cash flow it.

If your partnership involves real estate, you will likely to be able to sell the note at creation, if you prefer. However, in all honesty, if the dissolving partnership is a business, you will probably need to season (collect some payments on) the mortgage before you are able to sell the mortgage note. However, in as little as 4-6 months, depending on the individual situation and business type, you will likely be able to sell all or part of the mortgage for a lump sum of cash.

First Class Cash Flow Handlers buys and sells notes of all types, including mortgages secured by real estate and by businesses. Please feel free to contact us for more information.