"I Want to Sell My
Note - What is it Worth?"
"You Want to Sell Your Note | We Want to Buy Your Note"
By: Trust Deed Investments Randy
The best way for us to give you the most accurate quote on your note is to have these documents
The deed or mortgage
Escrow instructions and/or
Escrow closing statement
Information on your payers
Send Us your Document Package
These documents help us understand exactly
what you have for sale. You may find it challenging filling out the quote request accurately without them. It's in
your best interest to provide accurate information to avoid changes in the quote. Keep your original documents in
safekeeping until we close.
Be thinking about how much cash you really need. Are you open to selling a part of
your note? You will often have greater success with a “partial.” The discount will generally be smaller, and there
are more buyers for your note. You can get some cash up front, but then still have payments coming to you down the
road. Just something to think about.
value of your note depends on many different
factors. YOU ultimately determined the value and marketability of your note when you created it.
When someone is selling a note, I educate them about the different ways
they can sell a note. They can sell part of the note, or all of it.
If you’re interested in learning more about how the value of your note is determined,
The present value of a mortgage, note, trust deed or land
contract is determined by the following factors:
Degree of Safety:
This is the certainty with which the return from investment is expected. Present value increases or decreases
according to the safety factors. The higher the perceived risk, the higher the yield required, and the deeper the
discount expected. Protective equity, credit score of payers, seasoning and payment history combine to create the
level of safety, and therefore yield requirements, on any given note.
Equity: The cash
down payment made at the time of purchase represents the hard equity most important in determining the safety of a
note. The less protective equity available, the less valuable the note is. A potential note buyer will always get
an appraisal to establish the fair market value of the collateral securing the note; however, it is important to
remember that equity provided through appreciation is significant, but it is not as important as hard
Credit Score: If
this note were sold and due diligence uncovered a credit score below 620, there would be a deeper discount
required, as the note would represent more risk to the investor.
Seasoning: A note
is considered seasoned when at least 12 payments have been received. A well-seasoned note is more valuable than a
Payment history addresses how timely payments have been. A history of late payments would decrease the value of the
Balloon: Notes with
short term balloon payments are considered riskier than fully amortizing notes unless there is a clear and obvious
exit strategy. The availability of affordable conventional financing is crucial.
If you prefer to work directly with a
consultant over the phone, simply call our toll free number (888)
757-1113 we will walk you through the process, it is that simple.
for a FREE No Obligation Quote
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