Answer eight questions about your seller-financed note and get a letter grade, what each weakness costs you when you sell, and what to fix on your next one. Built by a buyer of 250+ land notes.
Down payment is the biggest driver, 20% or more puts a note in the strongest pricing tier. After that: a promissory note with recorded deed of trust rather than a land contract, a 10%+ interest rate, a term of 10 years or less, clean payment history, and professional servicing.
Yes. Damen Capital requires no seasoning, notes can be sold before the first payment or even at the closing table. A clean payment record helps pricing on older notes, but a brand new note with strong structure prices well.
In a land contract the deed does not transfer until payoff, which creates legal complications in default and makes the paper far harder to resell. Many buyers, including Damen Capital, do not purchase land contracts at any price.
Write the next one better: require 20%+ down, charge 10% or more, keep the term at 10 years or under, use a note and recorded deed of trust, and put professional servicing with ACH in place from payment one.