Less owner financed notes were created in 2017 than 2016, but the down payments were larger, the loan balances were larger, and the borrowers were better qualified. Here is a snapshot of what happened:
- The average loan amount for a residential note was $184, 922 – up from $165, 048 in 2016.
- The average loan amount for a commercial note was $417, 416 – up from $386, 555 in 2016.
- The average loan amount for a land note was $264, 996 – down from $298, 186 in 2016.
- Down payments have increased over the past four years, indicating stronger borrowers are buying owner financed properties.
- Arizona, Nevada, Utah and Colorado all created more notes in 2017 than 2016.
- Texas, Florida and California were the top 3 note creators.
- 86% of all notes created were single note creators. Only 14% of the market were people creating more than 1 note.
- Scott Arpan, Advanced Seller Data Services, www.NoteSellerList.com. Published in The Paper Source by Bill Mencarow, May 2018, www.PaperSourceOnline.com