Looking to Sell right to future balloon payment

Member since 2020 · 1 post · 0 votes

Ok here is my situation. I seller financed a rental property of mine. They paid a down payment in the beginning, they pay a little bit more than the current mortgage payment and so i cash flow a little bit and then they will pay a balloon payment in about 8 years of around 200k. I am currently in need of some cash and am looking to sell the right to the future balloon payment at a discount. Is this something people do? Is there someone, or some company that would buy that balloon payment at a discount to get access to some cash now?

0 Reply

54 views

2 Replies

Jump to latestLatest

Sort by

Chris SeveneyBusiness Member
Moderator
Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
10mo
Quote from @Caiden Brown:

Ok here is my situation. I seller financed a rental property of mine. They paid a down payment in the beginning, they pay a little bit more than the current mortgage payment and so i cash flow a little bit and then they will pay a balloon payment in about 8 years of around 200k. I am currently in need of some cash and am looking to sell the right to the future balloon payment at a discount. Is this something people do? Is there someone, or some company that would buy that balloon payment at a discount to get access to some cash now?

you can sell the note, depending on the interest rate of the loan will have a major impact on that payment. Most investors will want 12-15% annual return, so teh note would be discounted down to a number that when they get the $200k they would get that number.
For example based on the above and the person only getting the balloon payment, expect to get 50-75k for that balloon payment in 8 years.
7e investments53 Reviews
Website View Page
0 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.