The Real Estate Notes Learning Center
From Seller Financing, to Selling Your Note, to Mortgage Note Values — Here’s What You Need to Know!
Partials and Real Estate Notes
What You Need to Know About Selling Whole or Partial Notes When you provide seller financing on property you own, you hold a promissory note. It’s a promise from the buyer to pay you back. A note is a real asset you own – like cash in the bank. Like many investments, promissory notes are not liquid. If you need money, you can’t withdraw it from the note. But you ...
Lien Positions and Seller Financing
Everything You Need to Know About Lien Positions and Seller Financing Transactions Have you heard the term “lien position” or “lienholder”? This article sheds light on lien positions and why they’re crucial as you consider seller financing . To understand what a lien position is, let’s start with some background on how a mortgage transaction works. Most people who buy a first home have not saved enough money needed to ...
Missed Payments and Mortgage Notes
When a Buyers Missed Payments on a Mortgage You Hold, What Should You Do? Any decision to offer seller financing involves risk. Buyers do not seek seller financing when their financial situation enables them to secure traditional bank loans. That’s why sellers should: Secure a large down payment on a loan. Set an interest rate that’s higher than what banks can offer. Why? Because buyers who make higher down payments have ...
How Much is Your Note Worth?
How Much is Your Mortgage Note Worth? If you provided seller financing, you may wonder about selling a note to free up cash for other needs. One question is: how much is your note actually worth? Don’t assume the value is equal to the principal owed on the note. In fact, a note’s value depends on a number of different factors. Is Your Note Sellable? Investors invest money in ...
