Sell Your Note
When you finance the sale of a house or investment property, you create real estate notes, which can be mortgage notes, contracts for sale, or land contracts. When you hold these documents, the buyer of that house or property is making payments to you, and now, you want to cash in by selling that contract.
There are two ways you can sell your note. You can sell the entire note, or you can sell just a certain amount, such as a certain amount of payments. Regardless of what you do, the person who originally bought the property is still going to have the same payments in terms he or she originally agreed to. The payments are going to simply go to the person who purchased your note or part of your note.
When you sell your note, remember that your objective is to raise some fast cash. You’re not going to get a full face value of the node in question, AND you may also be facing other fees, so be careful.
When you first begin to look for someone to sell your note to, there are several things to keep in mind so that you sure the buyer you get is reputable, and you’re getting the most for your note. These include:
Although a deal may look good, if a buyer asks for upfront fees, don’t pay them. A good buyer will check your buyer’s credit and can give you a quote without charging you anything.
A good buyer is going to figure out what he or she is going to have paid expenses before offering you a price for the note, so most of the time, the buyer is going to pay for those expenses. In some cases, you may have to pay for the title policy, but only if the title has problems that are holding up the purchase. If the property appraisal comes up at less than the sales price, you may have to pay for the appraisal yourself. However, make sure you only give the buyer the money for the actual costs he or she has incurred in these cases, nothing more.
Once you’ve agreed to terms, get the purchase agreement in writing, along with contingencies and purchase price, and question anything you’re not clear about; get that in writing, too.
While unethical note buyers will first quote you an initial price and then lower it because they say your property buyer’s credit score is “low,” this is a bait and switch technique that no ethical buyer will ever use. Good buyers will check your buyers credit first, before they make the offer.
Provide all the necessary information, such as sale price, type property, current balance, payment amounts, and so on. You should get responses within a couple of days.
Once you get an offer, you’ll need to send the title policy, settlement statement, note, and the mortgage or deed of trust. If the property has not been appraised recently, note buyers will also usually set that up and pay for it unless the property comes in under the sale price.
Once you sell your note, processing time will take roughly two to three weeks; ask about the particular buyer’s processing time, because it may vary.
I’m an experienced Note Buyer capable of getting people cash for selling notes of all kinds.
