| There is one simple reason that people sell real estate | | | | real estate note if choosing to sell it, there are other |
| notes, and that is to raise cash quickly. To achieve the | | | | things to keep in mind when selling that will make sure |
| desired result, however, you must make sure you've | | | | you get as much value as you can out of the note. |
| done your research: that you are selling to a reputable | | | | First, and most important, is that when selling, you |
| buyer or group of real estate note buyers, and that the | | | | should pay no up front fees to buyers. Most reputable |
| buyer of the property you are financing has a | | | | buyers will check your buyer's credit and give you a |
| reputable credit history. | | | | quote on the note without charging you any sort of |
| A real estate note is the document created when | | | | "processing" fee. |
| financing the sale of a home or other (likely | | | | Make sure that the note buyer checks the property |
| investment) property. Different categories of real | | | | buyer's credit up front before quoting you on a price |
| estate notes include mortgage notes, land real estate | | | | for the real estate note. A sign of an unethical buyer is |
| contracts, and contracts-for-sale. Holding a real estate | | | | quoting one price initially, then quoting a lower one later |
| note means that payments are coming into you, but | | | | using the property buyer's credit score as an excuse. |
| often, depending on the financing, those payments are | | | | This is a simple bait and switch and a strong sign that |
| small and trickle in, rather than providing a quick influx | | | | you should not deal with these real estate note buyers. |
| of cash. This is the reasoning behind selling to note | | | | Get several quotes before selling. This can help to |
| buyers. | | | | ensure you get the best value for your note. If possible, |
| There are a couple of options when selling real estate | | | | it is best to wait until at least six payments have been |
| notes. When choosing between these options, take | | | | made on your note before attempting to sell; this is |
| into account your goal in selling the note. If you only | | | | because buyers will be more likely to pay a higher |
| need a smaller, quick influx of cash, it might be in your | | | | price for a note that is considered "seasoned," knowing |
| best interest to only sell a portion of the note. If you | | | | that the property buyer is reliable in making payments. |
| need something more substantial, you will likely want to | | | | Chances are, you will get somewhere between 20 |
| sell the entire note. Whichever happens, the payments | | | | and 30 percent less than the remaining value of |
| made by the buyer are the same-they will just make | | | | payments due on the note. This is fairly standard, and |
| the payments to the new note holder instead of to | | | | though the discount seems steep, it is probably the |
| you. | | | | best value you will get on the note. If you have not |
| Selling only a portion of the note means selling | | | | received an offer that is satisfactory, you can hold out |
| "x-amount" of payments to the real estate note buyer. | | | | until your note is more "seasoned." |
| Many buyers will do this, but others will not, so be up | | | | Selling notes that you hold can be a good way to get |
| front with how much of the note you would like to sell | | | | a quick influx of cash. Just make sure that you're |
| at the beginning. | | | | careful and don't rush into it, and it can be beneficial for |
| While you will likely not get the true face value of your | | | | you and for the note buyer. |