Selling real estate notes can be an intimidating process. 2. You know you won’t get the full face value for your note, but will there be other fees you have to pay too? How do you know if the buyer is reputable? What is a normal discount on a note? Here are some guidelines to follow: 1. “Seasoned” notes sell for more too. Buy Real Estate Notes Processing time varies, so ask. The first and second place notes can’t add up to much more than 70% of the value of the property, or you’ll be looking at a steep discount Discounts, by the way, will almost always seem steep. Usually, once you agree to the offer and send the documents (if done by mail), you can expect to receive a certified check or electronic transfer to your account within two to three weeks. 4. Sell Real Estate Notes Note buyers will look at these differently though.
You can sell second mortgage notes, and other second-place real estate notes as well. Those are notes that have had payments made on them for a while. Higher interest rates and shorter loan periods will get you more money too. Rich Dad Real Estate Seminar Contact several note buyers for quotes. This is called “bait and switch,” and it isn’t ethical. Some note buyers will buy new or “unseasoned” notes, but if you can wait until six payments have been made, you’re likely to get a much better price. You should be able to find many note buyers who will check your buyers credit and give you a quote without charging you. Real Estate Make Money They should respond within a day or two. It could be a mortgage note, or a land-contract or contract-for-sale.
You can sell the entire contract, or just a certain number of payments if you want. The note buyer should check the credit of your property buyer upfront. Rich Dad Poor Dad Get Top Dollar When You Sell Real Estate Notes Notes with a balloon payment get a higher price. You’ll need to provide information like the type of property, sale price, payment amounts, current balance, etc. When you get a quote you like, you’ll have to send copies of the Mortgage or Deed of Trust, the Note, the closing or Settlement Statement, and the Title Policy. The point is that the buyer is making payments to you, and you want to cash in. Buy Real Estate Notes Suffice it to say, they need to make money on the deal, and you should be sure you have a good use for that cash before you sell those real estate notes. The buyer of your property will have the same terms and payments. Second, if the property appraises at less than the sales price, you may have to pay for the title policy, if there are problems with the title.