Trust Deed Investments

"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 Wilkins

The best way for us to give you the most accurate quote on your note is to have these documents available:

  • The note 
  • The deed or mortgage 
  • Escrow instructions and/or 
  • Escrow closing statement 
  • Information on your payers 

Send Us your Document Package On-line

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.

The present 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, keep reading!

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 equity.

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 “green” note.

Payment history: Payment history addresses how timely payments have been. A history of late payments would decrease the value of the note.

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.

Click Here for a FREE No Obligation Quote

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