Close & Collect Payment

Two Paths to Profit

Once you have a buyer, you have two options for completing the sale:

Cash Sale Process

Option A: Use a Title Company (Recommended > $5,000)

1. Select a title company – Get quotes; expect $500-$1,500
2. Open escrow – Provide signed purchase agreement
3. Title search – Company verifies clean title (1-2 weeks)
4. Closing documents – Company prepares deed and settlement
5. Buyer funds escrow – Wire or cashier's check
6. Sign and record – Deed recorded; funds released to you

Option B: Self-Closing (For deals < $5,000)

1. Prepare warranty deed – State-specific template with legal description
2. Collect payment – Wire or cashier's check only
3. Sign before notary – Both parties sign; notary acknowledges
4. Record the deed – File with county recorder ($10-$50)
5. Provide buyer copies – Send recorded deed confirmation

Owner Financing Setup

To offer seller financing, you'll need three legal documents:

The Three Required Documents

Recommended Terms for Seller-Financed Notes

• Down payment: Minimum 10%, ideally 20-25% (buyer has skin in the game)
• Interest rate: 9.9-12% APR (higher than banks, justified by easy qualification)
• Term: 3-7 years (shorter is better for resale value)
• Payment frequency: Monthly (easier to track, standard for note buyers)
• Prepayment: Allow without penalty (buyer-friendly, doesn't hurt you)
• Late fee: 5% after 10-15 day grace period
• Due on sale: Full balance due if buyer sells or transfers property

Managing Notes & Payments

Once you have active seller-financed notes, you need systems to manage them:

• Payment processing: Use a loan servicing company ($15-25/month per note) or accept ACH/credit card payments directly
• Payment tracking: Record every payment with date, amount, and remaining balance
• Late payment follow-up: Contact buyer within 3 days of missed payment
• Annual statements: Provide Form 1098 (interest paid) to buyers for tax purposes
• Payoff processing: When note is paid in full, file lien release with county

What If the Buyer Defaults?

If a buyer stops paying, you have options:

1. Work it out – Offer payment plan or temporary forbearance
2. Deed in lieu – Buyer voluntarily transfers property back to you
3. Foreclosure – Legal process to reclaim property (state laws vary, 30-180 days)

The good news: you keep all payments received, retain the property, and can resell it again. Default is rarely a total loss.

Selling Your Notes

Need cash now? You can sell your performing notes to note investors:

• Seasoning required: Most buyers want 6-12 months of payment history
• Discount expected: Notes typically sell at 70-85% of remaining balance
• Partial sales: Sell some payments now, keep the rest
• Note buyers: Mortgage Buyers Inc., Note Investor, local real estate investment groups

How Greenlane Land Helps

• Document Generator – Create state-specific deeds, notes, and mortgages
• Payment Tracking – Log payments, calculate balances, track late accounts
• ACH Integration – Accept automated bank payments from buyers
• Amortization Calculator – Model different term/rate scenarios
• Note Portfolio Dashboard – See all active notes, projected income, and maturity dates
• Default Workflow – Automated late notices and follow-up sequences