Frequenty Asked Questions

To Sell or Not to Sell

We know that selling a Note is a very important decision. The most important thing a Seller can do before selling the Note is – BE INFORMED. The questions below are the most Frequently Asked Questions by Sellers who are in the market to sell their Note.

What are the Key Benefits to Selling a Note?

  • Probably the most important benefit is that you receive an immediate Cash lump sum for the Note and not have to wait 10, 20, or 30 years to get paid. You relieve concerns for late payments, collection issues, foreclosure, bankruptcy, divorce and even death of payer.
  • A Note is a financial resource that when sold can provide immediate cash to invest in a business opportunity that can result in higher return especially if the Note has a low interest rate of less than 6%.
  • You get relief from concerns about whether the Payer has paid property taxes and insurance and relief from IRS reporting requirements.

What is the Cash Value of my Note?

  • Not all Notes are the same and even when they may look the same the value of the Note can vary depending on the parameters of the Note.
  • The parameters that give the Note a good value in order of importance are Credit of the Buyer, Equity in the property (Down Payment), the Current Market Value of the Property sold, Seasoning (number of payments made) Interest Rate and the Term of the Note (amortization period).

How long does it take to Close?

  • The closing process will vary depending on the Note Seller’s interest and ability to provide the necessary documentation to close. The necessary documentation is essentially the closing documents the Seller received when the property was sold. If all the documentation is in order the normal closing time is 24 to 28 business days. Frequently it is sooner.

If I sell the Note – how will it affect the Payer making payments to me?

  • Nothing will change in the terms of the Note or any documents. All terms and conditions in the Original Note will remain the same.
  • The only impact on the Buyer/Payer is that the latter will be making the payments to the Buyer of the Note.