|Commercial Note Buyers
Buyers of Commercial Owner Financed Promissory Notes
Call Us @: 877-655-5625 or 828-689-4683
We are not just buyers of commercial seller financed Notes. We pride ourselves on having great pricing and no pressure superior service for sellers of residential notes above $75,000. We have many happy customers an owner financed residential Sell My Note over the years. Why not join them? We also are available 7 days a week and return all calls within one day and usually 1 hour. Call anyone else and see when (or if) your call is returned.
Many in the industry try and make owner financed note selling really complicated and even mysterious but it isn’t. Here are the normal steps to Sell My Note.
Call 1-877-655-5625, 7 Days a Week
1. Call us and get a quote. Our quote as with every other real estate Note Selling buyer will be dependent on a) the condition and appraised value of the property, b) the credit of your borrower(s), c) proof of timely payments by your borrowers, and clear title.
2. Once you have accepted our quote, we go to work getting you a lump sum of cash for your Note Selling with the first step being a review of the borrower’s credit. Once this step is complete, we move to the proof of timely payments step.
3. After proof of timely payments is verified (copy of checks or bank deposits usually) we move to the appraisal step. This can involve a Realtor opinion of value, called a BPO or broker pricing opinion, or in some cases a full appraisal. Every case can be different based on the uniqueness of the property.
4. Once an acceptable value is determined, we move to the Title or last phase of the note buying process.
5. Title work rarely uncovers anything but will be done by every seller financed note buyer.
6. Once an acceptable title review is received, we move to the most important step for you the note seller and that is the final paperwork and funding, which is normally done by wire transfer.
The note buying industry buys notes at a discount and how much a note is discounted depends on the individual note, transaction and property scenario. Allow me to elaborate.
In a nutshell, there are two primary factors that determine how much a note is discounted, 1) The perceived risk involved and 2) The financial structure (amortization, interest rate, etc.) of the Sell A Note. Each of the primary elements has sub-elements including the following:
Perceived risk – Sell A Note buyer will review your scenario to determine the discount rate used to apply to the future stream of payments. Not all promissory note buyers uses the same discount rate as they have different costs of capital and return requirements but whatever discount rate is used, it is applied to the remaining number of payments being purchased to arrive at a price to you.
Note financial structure – The interest rate on your note as well as the amortization period can have a significant (positive or negative) impact on the amount paid for your note. Low interest rates and long amortization periods hurt the most. Think of it like the reverse of compound interest where compound interest can really accumulate after a while in a long-term scenario and just the opposite occurs in note discounting. Every additional year of discounting on real estate notes hurts the price paid.
Below are a few frequently asked questions that might answer some of your specific questions on selling a note.
Why sell your note? – Note holders sell their note for a variety of reasons including 1) not wanting to wait 10, 15, or even 30 years to receive the money from the sale of their property, 2) To cover an emergency financial situation, 3) Pay for a child’s college tuition, 4) Start or fund a business, 5) Buy another home, 6) Take advantage of a great investment opportunity and many others.
How long does Sell A Note selling process take? While every situation is unique, the average time is roughly 3 weeks.
What if my borrower’s credit is bad? Depending on just how bad your borrower’s credit is either we will not be able to complete the purchase or we will need to adjust the price to reflect the bad credit. Also, if your borrower(s) has put down a very large down payment and/or has been paying on the note in a timely manner for numerous years, it can mitigate this issue.
Can I sell just a portion of my note? Yes, but while it’s not technically possible to sell a portion of a real estate note, you can sell a portion of the future payments, which is what’s called the “partial sale of a note” or “selling a partial”, meaning partial payments.
Will I need to tell my borrowers I am selling their note? Yes since they will be sending their payments (that is the only change for them) to but you don’t have to do that right away if you have their social security numbers so we can pull credit (we can sometimes pull without them but not always).
Do I have any liability after I sell a note? No, unless you only sell a partial note whereby you would still share in the risk but would be contacted should the borrowers default on the loan.
How would selling my note affect the borrowers? Basically, the only change for the borrowers is where they make their payments. There is one other item I should mention as it may incent your borrowers to cooperate should we need their assistance (usually only involves their verifying the amount they owe) and that is the fact that we will be reporting their payments to the credit bureaus. Timely home mortgage payments are often a big boost to a borrower’s credit score helping them save money on interest (lower rates) for other debts.
If I haven’t completed the sale of a property and may use seller financing to help sell it, would you guide us on structuring Sell A Note. Yes from the standpoint of a more valuable and marketable note, but you still need to use an attorney or in some states a title company to be sure the note and Deed of Trust or Mortgage are legally binding and correct.
Make A Call Now! 877-655-5625 or 828-689-4683
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