Posted by David Butler on April 26, 2007 at 12:46:31:
Hello Bill,
Generally, you can easily obtain the necessary forms through the escrow agent, or closing attorney you use to close the deal (highly recommended you use neutral third party licensed to do closings, BTW…).
Otherwise, local stationary stores, and a number of online websites do provide the necessary forms very inexpensively. Do a search and you should easily be able to pull up several.
As to structuring the deal itself. First step is to ALWAYS have as clear a picture as possible of your needs and objectives, as opposed to your desires. From that point, you look to make the best deal you can for yourself - which obviously will require the other side to agree.
Beyond that, there is a ton of preexisting discussion that goes right to the heart of your questions here. But briefly, how long you must hold the note to season it is a function of the deal itself. Under the right circumstances, you can sell the note shortly after closing, if you are able to get a price that satisfies you.
Payor credit, property value, down payment, economic climate, and exposure of the prospective note to prospective buyers are all factors that will determine the viability of the note at the time it is offered for sale; as well as the price that an investor will pay for it.
Mike Morrongiello, John Behle, and myself have all addressed the various factors numerous times here - including recent discussion found right down below from several weeks back.
You can tap into this valuable resource, as well as related helpful discussion, by entering terms such as “creating notes”, “simultaneous closes”, “safe harbors”, “note clauses”, “note pricing”, and similar terms as your keywords in the “search” engine directly above.
Good Hunting, and best wishes for your success!
David P. Butler