note is identical to an owner-financed mortgage note except
that the note in this scenario is is created from the sale of
a business instead of a home.
It is very common for a business seller to take back a note
to help with the sale of his / her business. It can be difficult
at times for individuals to obtain a bank loan with which to
purchase a business.
It is estimated that approximately 20 million
businesses exist in the United States at any given time.
Approximately 10% are sold on an annual basis with an
average seller-financed note of $50,000.
That computes to $100 billion worth of notes generated
annually.
A holder of a business note does not know that he / she can
sell it. This individual is no different than a mortgage holder,
personal injury recipient, or lottery winner. A point in time
will occur when preference of a lump sum of cash over
monthly payments will prevail.
Charter Financial does NOT:
