US Funding Solutions – Commercial Loans and Note Buying
U.S. Funding Solutions are buyers of private mortgages, aka buyers of owner financed mortgage notes and Deed of Trusts.
We pride ourselves in providing the best commercial real estate and business loans available for your particular situation and the best pricing and service if you wish to sell a private mortgage note and the note’s security, the trust deed.
We also offer great commercial rehab loans starting at $500,000. Call for more information..
Private Mortgage Buyer Testimonials
Below are just a couple of testimonials from the many, many happy clients utilizing our services.
“Working with Ron was a dream. He seems to be available all the time, including weekends and holidays. And when I couldn’t reach him when I called, he always called me back very promptly, usually within just a few minutes. His accessibility made the process of selling my payments so much easier. He always did what he said he would do, when he said he would do it. I highly recommend him.” Jane P., Austin, TX
“Not only was Ron’s initial quote considerably higher than other quotes I received, he took the time to fully understand my situation as well as explain the process of pricing and selling. He then proceeded to do exactly what he said he would do, despite quite a few complications (not his fault) that arose. Ron earned my trust, which isn’t easy to do. I would use him again even if his quote was lower than others. Great friendly service and he’s easy to work with.” Jim S., Bloomingdale, GA
How We Work:
At U.S. Funding Solutions, Inc., we pride ourselves on being available (7 days a week), friendly and providing outstanding service. We NEVER use high pressure tactics to try to coerce a customer into selling their income stream, or accepting a commercial loan proposal etc. until they are ready. We also are available to customers or professionals such as Realtors, CPAs, Attorneys, etc. to answer any questions that your representative may have.
A little about selling a private mortgage.
Buyers of private mortgages purchase private mortgages at a discount. That discount is dependent on 2 primary factors, 1) The perceived risk of the note and 2) the terms of the note. Let me elaborate on each of these factors.
First, the perceived risk. Withing this factor are 3 elements when combined determine a private mortgage purchaser’s perceived risk. They are a) The amount of down payment and/or equity, b) The credit of the borrower(s) and c) The perceived marketability of the property should the note buyer have to take posession of the property. These elements determine what a real estate note buyer uses as the discount rate to apply to the future cash flow.
Secondly, the terms of the note or what I like to say, the pure math of the deal. This element is more about numbers than perception as the discount rate determined above is applied to the future payments to “discount the future payments to a dollar amount today”. In this note discounting, the shorter the amortization period and higher the interest rate, the lower the discount amount to the note seller.
If you are considering selling a property through owner financing, please keep the following in mind. 1) Get as large down payment as possible. This not only lowers the discount to you should you ever want to sell a private mortgage note but it lowers the amount you will take a discount on as 100% of the down payment goes into your pocket. 2) Charge an above market interest rate. Remember you are in the drivers seat and the buyer most likely can’t get bank financing. Aim for 3 to 5% above the prevailing mortgage rate. 3) Have the buyer provide you with a tri-merge credit report. Knowing their credit scores and history helps you in negotiating the terms. If the buyer’s credit is horrible, I would seriously consider not offering them seller financing . 4) Make the amortization period 20 years or less. 30 year amortizations are the deepest discounted notes. 4) Have an attorney or Title company depending on the state you’re in prepare the documents and close the transaction. Charging their fees is normal for the industry so that should not come out of your pocket. 4) Keep good records of the borrower’s payments and do NOT accept cash, checks or bank deposits only.