Can anybody see a benifit to this for the seller? I have to present an offer tomorrow where an investor would like my seller to take out an equity note. I don't know much about them so I talked to my broker and mortgage lady and they explained to me what he is wanting... but it doesn't seem there is much benifit to the seller. Thanks

They can charge interest and have a residual income for 15 years or so possibly.

They could sell the note to an investor and make some money off of it if they do not want to risk the buyer defaulting.

The investor wants your client to take back a note for the equity in the house so he does not have to come up with the equity at closing. The investor wants to minimize his out of pocket.
Then when he sells the property your client will be paid when his buyer gets financing.

It all depends on your market. What is the average DOM and what is this houses DOM? Have you had any other serious lookers? Is the house priced to sell or is it on the high side?

There are many factor that would determine if this is good for your sellers or not.
What did your broker advise?

Equity notes just aren't that common here... my brokers thought it wasn't in the sellers best interest. My seller didn't like the idea either, but the investor is still very interested in the house I just have to send him a CMA tonight. Average DOM here are about 200 (sloooooooow market) his house has been on the market for 61 days... we just reduced it when the investor called (reduced it $20k) but he seen the old price and was interested in it. We have had several showings but no bites.

I would wait and see what the 20k reduction does before i mess with an equity note.Anything will sell for the right price you just have to determine the absorption rates and what the houses are selling for in the time frame the seller needs to sell and see if your sellers are willing to reduce to market price to get it sold.