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Why Sell Your Real Estate Note?Intro
Obtain Financial Success
There is one simple reason that people sell real estate notes, and that is to raise cash quickly.
A real estate note is common terminology for a document created when financing the sale of a home or other property. Different types of real estate notes include promissory note, mortgage notes, land real estate contracts, and contracts-for-sale, generally referred to as a “Note.” Real estate notes are secured by either a Deed Of Trust or Mortgage which identifies the collateral for the loan. Holding a real estate note means that payments are coming into you, but those payments are small and trickle in, rather than providing instant cash. This is the primary reason to sell your note; money today is always worth more than money tomorrow.
Results
Grow Your Nest Egg
options
There are a couple of options available when selling your real estate note. If you only need a small sum of cash, it might be best to only sell a portion of the note. This entails selling a specific number, or stream, of the remaining payments due under the terms of the note. If you need a substantial amount of cash, you will likely want to sell the entire note.
Whichever you choose, the payments made by the buyer remain the same and they will just continue making their payments to the new note holder instead of to you.
While you will likely not get the full face value of your real estate note there are other things to keep in mind when selling to ensure you get as much value as possible. First and foremost get several quotes before selling. This will help to ensure you get the best value for your note. If possible, it is best to wait until at least six payments have been made before attempting to sell. Most note buyers will be more likely to pay a higher price for a seasoned note knowing that the buyer has exhibited responsibility in making the payments.
money today
As I stated earlier, money today is always worth more than money tomorrow. Therefore, the chances are that you will get somewhere between 10 and 20 percent less than the remaining balance due on the note. This is fairly standard, and though the discount may seem steep, it is probably the best value you will get on the note. If you have not received an offer that is satisfactory, you can always hold onto your note and reconsider selling it at a later date.
Selling your note can be a good way to get cash to pay for a vacation, new car, your child’s college education or just an unexpected circumstance. As long as you’re careful and don’t rush into it, it can be beneficial for you and the note buyer.
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9050 W Overland Road,
Boise, ID 83709
+1 (800)851-4648
info@thenotepeople.com