If you’ve studied seller financing or have a mortgage note that you’re ready to sell, then you’ve probably already come across the terms “face rate” and “discount.” Let’s do a quick overview of these two important terms. What is the Face Rate of a Note? The “face rate” is the interest rate being charged to the borrower as specified on … Read More
When is the Right Time to Sell Your Note?
Most folks would prefer a full cash offer when selling their property, but that’s not always possible. Various factors can make it hard for buyers to get bank financing, so you may have decided that offering seller-financing was the best way to facilitate the sale of your property. It’s likely you were told that the note you carried back could … Read More
What is Real Estate Note Due Diligence?
If you’ve been around real estate investors of any kind, you’ve most likely heard the phrase “due diligence.” Before a savvy investor pays cash for a property or real estate note, they will perform their due diligence. This is really just a fancy term for research, which varies depending on the investment type. This article covers the due diligence items … Read More
Top 21 Reasons to Sell A Mortgage Note or Trust Deed
People have many different needs and reasons that motivate them to sell a mortgage note or trust deed. Regardless of the motivation, it’s important to know that as the note seller you have options. Private note buyers, consultants, and even a variety of financial institutions are eager to buy your mortgage note. Here at Best Value Notes we work with … Read More
Note Rates – What’s the Big Deal?
The interest rate a seller agrees to accept when seller-financing a property to a buyer can have a dramatic impact on the note’s future value to investors. Unfortunately, many sellers don’t give this important decision proper consideration. The fact is that the note’s “face” (interest) rate is a very big deal … here are a few reasons why! Inflation Hedge … Read More
Increase Note Value with Verifiable Payment Histories
Keeping an accurate record of the payments received on a note can actually increase its value. Payment histories show how much the borrower still owes on the loan along with their payment habits over time. It may not seem so important to keep detailed payment records until you get ready to sell your note. Note investors place significant value on … Read More
Verifying Taxes and Insurance
Are you worried the buyer won’t make the monthly payments? If so, you’re certainly not alone. This is a common concern of sellers offering owner-financing. And it should be, since an owner-financed note is very often one of the seller’s most valuable financial assets. Unfortunately, all too many sellers fail to protect their asset when it comes to one of … Read More
Safekeeping the Original Note
Can you easily locate the original promissory note created when you sold your seller-financed property? This important legal document should be kept in a safe place, and here is why! The note is a promise to pay (or IOU) from the buyer which outlines the specific amount owed and terms of repayment. It is considered a negotiable instrument in the … Read More
