Note Queen: Owner Financing Strategies

Seller 'terms'... why is that the same as 'seller financing'?

Because instead of taking all cash, the seller gives the buyer time to get the property paid. The buyer will have a period of time, a term (like a semester is a term) over which to pay for the property.

Terms also refers to the other details as well: amount of the down payment, interest rate, impounds or not, late fee, grace period, maturity date, etc.

It's also called 'carrying paper'.... a promissory note and deed or trust or mortgage is written on paper, right? They are carrying the terms... agreed to and written on a sheet of paper that is signed and notarized.

"Don't pay me off!!" That's how a lot of people who are collecting payments feel.

They don't want the tax hit of the payoff, so when their borrowers tell them they're going to refinance, many note holders will offer to match or beat the bank terms so the borrower doesn't pay them off and the note keeps generating that nice long term cash flow.