What is a Privately Held Mortgage or Trust Deed


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Anybody who owns a house or a commercial property is familiar with mortgages. Nearly all real estate transactions are handled with financing. Rarely are real estate purchases paid for entirely up front. Generally the purchaser makes a down payment to a financial institution and the institution finances the balance with the property owner. This common way of managing real estate investment is certainly the most popular and familiar method. However there are alternative ways of receiving the financing you need to buy a property.

Privately held mortgages also referred to as trust deeds are becoming more popular due to the added flexibility afforded by having interest rates and terms agreed to with a private funding source rather than having to adhere to a financial institutions lengthy, confusing and ever changing terms and conditions. Also in the end the bank makes more money from your investment while you end up having cash tied up for the term of the loan.

Selling mortgages to a private company creates financial freedom because most private mortgage firms will offer you a lump sum cash payment which you can immediately invest and begin to accrue interest on, allowing you to use your property to increase your wealth. Due to inflation it is often a better financial decision to have a lump sum of cash today which may or may not be less than the properties actual value. The larger the cash sum you have the greater the buying power and investment potential. In the end more money is made with cash on hand rather than small amounts invested over decades. In addition selling your mortgage to a private company eliminates the debt created by a long mortgage and saves you cash by doing away with years of interest payments.

Depending on the amount of money you wish to generate most companies offer several options. A few examples:

Balloon Purchase - If your mortgage or trust deed has a final balloon payment, the company can buy some or all of that balloon payment, and then you either sell or retain the remaining portion of the balloon payment.

Multi-Stage Payout - At closing, you'll receive a lump sum of cash, plus you receive a guaranteed payment at a set future date.

Reverse Partial Purchase - At the closing for the sale of future payments you receive cash, plus you get the next up front (number) of payments when they are due.

Split Partial Purchase - At closing for the sale of just a part of each of the future payments you'll receive cash, plus you get the remaining part of each payment when due.

Selling your mortgage to a private company can be a great way to generate that extra income you need. The great thing about receiving the cash for your property is that you can use that lump sum for anything you want. You are not tied down by a financial institutions or a complex list of terms and conditions.

Selling to a private company is also easy, and straightforward. The best companies to work with will make you an offer you can count on. The companies you want to work with will guarantee you will receive 100% of your offer and will pay all closing costs themselves. If you want to have a lump sum payment for your property and free yourself of your mortgage consult with a private investment company today.

Written by Jared More for Entourage Holdings, for more information on privately held mortgages and trust deeds or to contact a representative please visit http://www.entourageholdings.com or call 1-800-230-0869 and a member of our knowledgeable staff will help you make the right decision for financial needs!


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