Thinking of selling your mortgage note, but you’re not sure where to start?

There are two good reasons to cash out this type of investment.

(1) The need for cash. ( the reasons are many )

(2) Make a higher yielding investment.

A promissory note properly collateralized with Real Estate is a good investment, and receiving  monthly payments is a great source of income.

Most privately owned mortgages are sold at a discount. If your current balance owed to you is lets say $40,000.00, then you might receive about $35,000 to $38,000 for this note. There are a lot of factors that go into the amount of discount you as a seller may be asked to take, Interest rate, down payment, payment history, type of property, payer credit, are just a few.

How do you get the most for your note?

Step 1. If the Buyer is willing and can qualify for a new loan, try to get them (the Mortgagor) to Refinance. If your buyer can get a new loan from the bank your problem is solved, the balance owed is paid off in full to you. No Discount!

Step 2. If the buyer qualifies for a new loan but is not willing, you may offer some small discount as an incentive. Less of a discount than what a note buyer would pay.

Step 3. If none of the above work, then it’s time to think about selling your note to a note buyer. This means you will probably have to take a discount.

Step 4. Submit your note package (mortgage and property information) to three are four note buyers and take the best offer.

Step 5. Enjoy spending your cash.