We Help Your Cash Flow . . .

ADDITIONAL INFORMATION
REAL ESTATE NOTES (click here)
ACCOUNTS RECEIVABLE FUNDING (click here)

ADDITIONAL INFORMATION
ON REAL ESTATE NOTES

Real Estate Agents . . .

We can help you sell a property, at full price, in 2 to 3 weeks!

POTOMAC FUNDING SOLUTIONS represents a wide variety of private and institutional investors, nationwide, with unlimited funds! These investors aggressively purchase seller-financed mortgage notes . . .  often, right at the closing table . . .  or within a few days of closing! This is known throughout the real estate industry as a Simultaneous Close.

With our knowledge, experience, funding sources, and unique financing strategies, we can get more of your prospective buyers qualified  . . .  with less down payment  . . .  and can close faster than any traditional source!

What you don't know about . . .

Temporary Seller Financing

could be costing you time and lost opportunities!

It is a well-known fact that owner financing sells properties fast . . .  especially with properties or prospective buyers who do not conform to traditional lending/mortgage requirements . . .  but until now, the big problem with this approach has been that the typical property seller does not want to collect monthly payments . . . and wants or needs to cash out at closing . . . to pay off the existing mortgage, to cover all closing costs, to purchase another property, or for any number of other reasons.  Sellers need cash!

We have eliminated that problem! You and your clients now have access to our unlimited funds and can use our unique Temporary Seller Financing strategies to sell a property at top price, and still generate all the cash at closing!

Basically, the seller sets the sales price (this should be the appraised value), gets a down payment, and creates a First Mortgage Note that our investors will purchase for up to 95% of face value (depending on LTV, the credit of the buyer, and the rate/terms of the note), at, or right after, the closing! We will be happy to help you and your home seller through the entire process.

It's really quite simple! Essentially, you . . .

(1) Advertise "Owner Will Finance . . . No Points! No Bank Qualifying!" (We can help with the exact wording for your specific property!) This will attract many more prospects than the traditional approach.

(2) Set the sale price equal to the appraised value (not a penny less! . . .  even if this is higher than what you now have it listed for). At this point, the seller predetermines, based on their needs (We'll help!), the seller-financed deal that will be offered (i.e. Sales Price/Down Payment/First Mortgage Note seller will create/terms, etc.).

Example: Sales Price (appraised value) = $100,000. The deal that might be offered: 10% down ($10,000) and a 90% First Mortgage Note ($90,000) @ 9.0% interest for 360 months. The monthly payment would be $756.77 (P+I).  Remember . . . we are going to buy this note for approximately $82,500 . . . add the down payment and the seller gets a total $92,500 . . . less your realtor commission and normal closing costs to cover appraisal and title work.

From this point forward, there will be little or no negotiation with any prospective buyer.  Your seller is offering the financing, which the buyer can not get elsewhere, so the seller is in control.  Remember, this may be the only way the buyer can purchase a home, so they too appreciate this strategy and are eager to cooperate.

(3) Receive/screen calls from the Ad . . .  show the property to three or four prospective buyers . . .  position the seller- financed deal that is being offered . . .  get the interested buyers to complete a 1003 Credit Application and an Authorization to Release Credit Information (standard forms)  . . .  We'll help!

(4) FAX us the completed Credit Application(s) plus an Authorization To Release Credit . . . We will review the buyer's credit information, get them pre-approved, and help determine the best prospect to sell to. Our investors are much more lenient regarding credit issues than traditional sources and with a 575+ FICO score, we can get most people approved almost immediately.

At this point, based on the buyer's financial information and the structure and terms of the note, we can determine the exact value of the note and make a firm purchase offer.

(5) The seller and buyer(s) sign a Real Estate Purchase Contract . . . everyone agrees on the structure and terms of the note to be created  . . .  and we provide the seller with a contract to purchase that note at, or right after, closing.  We use your (the seller's) choice of a local title company, or closing agent, and they take over from there.  We work with them to create and collect all the required documents and set a closing date. 

(6) At closing, the seller creates and then simultaneously sells/assigns the mortgage note to our investor. The buyer's down payment . . .  plus the funds that will be wired . . .  are used to pay all closing costs. The seller collects the balance of the funds. The buyer will then start making their payments directly to our investor.  It's a done deal!

It is important to note that our investors are not "lenders" and can not create or originate loans. They only purchase existing mortgage notes and that is why the seller will use Temporary Seller Financing to first create the note and, in turn, sell that note to our investor.  Again, this is all done, simultaneously, at the closing table.

This approach offers many benefits to the Buyer & Seller!

The seller gets top price (appraised value) . . . the small discount on the note that is sold is often much less than the "price reduction and other concessions" that sellers often have to provide to buyers in order to get the deal done.

This is a very flexible approach! You can create and structure a note in a wide variety of unique ways to provide for varying buyer/seller needs.  And while most sellers will want or need to get all their cash out right away,  we can also accommodate the seller who just wants to get some cash now . . .  and the rest at some point in the future. This is called a partial purchase, and often provides the greatest overall return to the seller.

With our Temporary Seller Financing strategies, there are more prospects . . . with less hassle . . . and,  we close much faster! Once the buyer is under contract, and we have the required paperwork, we can usually close and fund within 7 to 10 working days, or less! Not 30 to 60 or even 90 days or more!

Lower closing costs! . . .  No junk fees! . . .  No points! . . .  No loan origination fees! Other than your realtor commission, the primary closing costs are simply the normal cost of an appraisal ($300 - $400) and title work (+/- $1,000)  plus processing/legal fee ($200 - $300) charged by the title company to create the required paperwork.  And these fees can usually be split by the buyer and seller.

You get all the above . . .  on a deal that would not have been doable with traditional financing. We can do these deals nationwide.  So, let us help you close more deals . . .  every month!

Do you have a property that has not sold?

Any buyers who can't qualify?

Any nonconforming properties?

Any deals that just won't close?

Residential . . . Multi-Family . . . Commercial . . . Land & Lots

We can help you close them all! E-mail us today!

Temporary Seller Financing is a win-win strategy for quickly selling a property for top dollar! If you want to discuss a specific property and how this strategy can help you and your buyers, please e-mail or call us to explore our services and possible next steps. We solve problems! We get deals done! E-mail or call us anytime!

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ADDITIONAL INFORMATION
ON ACCOUNTS RECEIVABLE FUNDING

Accounts receivable refers to all invoices that have been sent to a business's customers, but have not yet been paid. The term is often used interchangeably with invoices. In short, an invoice is a bill; accounts receivable is a collection of bills.

Accounts receivable funding, also referred to as factoring, is the purchase of accounts receivables from a business at a discount. The business generates invoices when it bills its business or government customers for goods or services provided. Accounts receivable funding allows businesses to collect money they are owed immediately by accepting a discounted (reduced) amount of the invoice from a third party funding source, or factor. Overall, businesses that utilize this financing as a business strategy agree that it is the easiest, quickest and least expensive way for a business to raise working capital and improve cash flow.

When a business sells to other businesses or a government entity, it is a commercial transaction. In commercial transactions, goods are typically sold on credit. The buyer does not have to pay for the product immediately. In fact, the buyer may have 30, 60 or even 90 days to pay. This is called buying on terms.

Producers extend payment terms for a number of reasons, including the following:

• Competitive Edge: Offering credit makes a producer more competitive in the marketplace. Businesses can buy products from many different vendors. If the only difference between vendors is their payment terms, buyers often will choose the vendor that offers the longest period of time to pay for the goods. Businesses generally want to hold on to their cash as long as possible.

• Verify Goods: Offering terms gives the buyer time to verify shipment of the goods, check the quality of the goods and cut a check to the seller. This process can take quite a while. In larger companies, each step is completed by a different department. Each department needs time to perform its functions and communicate with other departments.

When a commercial customer buys on terms, it does not get a receipt for the sale. Usually, it receives an invoice.

Accounts receivable funding is not money lending.

Accounts receivable funding is not a lending service. It is a discounted purchase.

Funding sources are not subject to the same regulations that banks are because accounts receivable financing is an outright purchase, not a loan.

Banks base their financing on the strength of the business applying for the loan. The funding source bases the purchase of invoices on the credit of the business' customers, not on the credit of the business.

Benefits of Accounts Receivable Funding

• Unlimited capital - As your sales increase, so does your working capital -- allowing you to meet increasing production demands. Accounts receivable funding is the only financing model that provides capital based on your sales activity.

• Bad debt protection - Many funding sources offer non-recourse funding, assuming the risk of delinquent debt and allowing you to eliminate this expense from your business income statement.

• Invoicing simplified - Funding sources take responsibility for the processing of receivables, including computerized invoice posting, check deposits, and payment reports -- all available to you in "real time".

• Greater purchasing power - With working capital to purchase raw materials, you can take advantage of better terms and volume discounts from your suppliers -- significantly offsetting the cost of accounts receivable funding.

• Preserving profits - Since businesses that utilize accounts receivable funding receive their cash immediately, there is no further need to offer your customers terms unless you choose to. Take your money off the table and further offset the cost of accounts receivable funding.

• Maintain control and equity - As opposed to compromising your business goals by accepting venture capital financing or a new partner, maintain 100% control & equity, as well as resolve your cash flow concerns.

• Flexibility and choice - Based on your specific cash flow needs, you have the flexibility and choice to determine how much or how little of your receivables you want to fund from month-to-month.

If your business sells products or services to other businesses or to the government on terms, a line of credit that can range anywhere from 30 to 60 days or more, you are a strong candidate for accounts receivable financing.

NEED CASH NOW? CALL US.

FREE, No Obligation Consultation!

Contact the professionals at Potomac Funding Solutions today via e-mail:  info@potomacfundingsolutions.com
or call (703) 953-1458 or 1-866-608-0665 (toll free)

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We are proud to be an outstanding member of the
American Cash Flow Association®.