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When a seller offers owner financing they agree to accept payments from the buyer. But sellers don't have to wait 10, 20, or even 30 years to receive their money. They have the choice to sell all or just part of their future payments for cash today.
Option 1 – When an investor purchases all the remaining payments on a land contract or mortgage note it is considered a full purchase.
Option 2 – When an investor purchases just a portion of the remaining payments it is considered a partial purchase.
The best choice will depend on the cash needs of the seller and the value of the payments being sold. A partial purchase can help minimize the discount but it comes with the worry of the buyer keeping payments current in the future. A full purchase can give sellers peace of mind knowing they are through with the property once and for all.