A real estate note is a legal document which outlines the terms of a mortgage/trust deed/land contract, including the principal amount borrowed, the interest rate, and the repayment schedule. When you are selling a real estate note, you are selling the right to receive the remaining payments. Here is a beginner’s guide to selling a real estate note.
There are reasons why you might consider selling a real estate note. Perhaps you need to raise cash quickly. Or maybe you’re simply tired of dealing with the hassle of managing the loan.
Selling a real estate note can be a great way to generate income. However, it’s important to understand the process and how to get the best price for your note. Take a few minutes to review this beginner’s guide to selling a real estate note…Or you can just fill out the form below to get started.
I'd like BEST PRICE for ALL or PART of My Note
Let’s go through this beginner’s guide to selling a real estate note, step by step.
Step 1. Find out what Your Real Estate Note Worth is worth.
How do you do that as the value of your note depends on many factors, including the remaining principal balance, the interest rate, payment history, the value of the property, the creditworthiness of the borrower, and the current market conditions?
Get an estimate of the value of your real estate note by asking your financial advisors for investor recommendations or speaking to real estate note brokers or filling out the form above. But be sure you are dealing with reputable note buyers… be sure to check out their referrals.
Step 2. When selling a Real Estate Note, you need to Find a Buyer.
Once you know the value of your note, you need to find a buyer. There are a number of ways to do this, including:
- Selling to a real estate note broker. Check out Real estate note brokers which specialize in buying and selling a real estate note. You can always call American Funding Group at (772) 232-2383. They will help you find a buyer quickly and efficiently.
- Selling to a private investor. There are also a number of private investors who are interested in buying real estate notes. You can find these investors through online marketplaces or by networking with other real estate investors.
- Make Sure You are Selling to a trusted and reliable buyer. Be sure to check out your note buyer’s Google reviews.
- Selling to the borrower. In some cases, the borrower may be interested in buying back their own note.
Step 3. The next step in Selling a Real Estate note is… determine the price.
Once you have found a buyer, be prepared to negotiate a price for your note. The price you get will depend on the factors mentioned above, as well as your and the buyer’s negotiating skills.
It’s important to be realistic about your expectations. You’re not likely to get the full-face value of your note but you may be able to maximize value by selling just a part of your note.
Step 4. Now You Must Close the sale.
Once you have agreed on a price, you will need to close the sale. This will involve signing a number of legal documents, including an assignment document (mortgage or deed of trust).
- Make sure that you have the original promissory note signed in ink.
- Appraisal. This will help you determine the current market value of the property.
- Title search. This is important to ensure that there are no liens or other encumbrances on the property.
- Prepare a due diligence package. This should include all of the relevant information about the note, such as the loan agreement, the borrower’s credit report, verifiable payment history and property appraisal.
- Be prepared to negotiate. The buyer is likely to try to negotiate a lower price, so be prepared to walk away from the deal if you’re not getting a fair price.
If you have any questions about selling a real estate note… Call (772) 232-2383
When selling a real estate note, be sure to talk to our Real Estate Note Buyers… at 772-232-2383
Primary States in Which We Buy: |Alaska| Arkansas| Alabama | Arizona |California | Connecticut |Colorado| Georgia |Hawaii|Florida | Idaho| Iowa | Illinois |Indiana | Kansas | Kentucky |Louisiana| Maine | Maryland |Michigan | Minnesota | Mississippi | Missouri| Montana| Nevada| New Hampshire | New Jersey | New Mexico | New York |North Carolina |North Dakota | Ohio |Oklahoma | Oregon| Pennsylvania| South Carolina |Tennessee| Texas | Utah| Virginia | Washington | Wisconsin |West Virginia | Wyoming|