Selling Real Estate Notes

Real estate notes are probably the most common in the cash flow note business, or probably the most discussed for both business and conversational purposes. Almost everyone that has purchased a house understands the concept of a mortgage and what their responsibilities are for paying the "house note". On the other hand, someone that is holding a note as a private individual may not be aware that it is possible to sell this note to someone else for a lump sum of cash.

Many individuals, when selling property, decide that they can act as the bank or traditional lending institution and provide the financing for the buyer. In doing so the owner acts as the note holder and the buyer pays the owner/note holder in monthly installments until the entire amount is paid off or in this case, sells the real estate note to a private investor or company. Many individuals have income streams set up through these type of notes, collecting a month income from each one. However, circumstances may sometimes require that the note holder sell the note and receive a lump sum of cash for a myriad of reasons including financial upheaval to acquiring cash to expand their cash flow note business.

Selling real estate notes is not difficult but does require research and due diligence. There are perhaps thousands of note brokers and note buyers within the United States that specialize in buying cash flow notes. Just as you would do your research before engaging the services of a real estate agent, insurance agent or financial planner, researching a note broker or buyer is just as important. Asking the note buyer for proof of qualification is recommended along with a transaction history. A reputable note buyer should have no problem providing information the information you require and providing the comfort you desire when selling real estate notes.

Most importantly, all records and language of the transaction should be in writing. If you, as the real estate note seller, do not understand some of the language ask questions. Attain full knowledge of the transaction before agreeing and signing off on your real estate note. As humans, we sometimes have a internal radar that alerts us when a situation may not be in our best interest. More times than not, these internal warnings are correct and should be heeded. If for any reason you are not comfortable with the transaction, express you misgivings to the note broker and call an end to the session until you have time to research your misgivings about the transaction.

Remember, you are selling your real estate note for a reason. Acquiring the best possible price for you note is paramount to both your portfolio and piece of mind. Research is the best possible way to finding the best deal and attaining the cash you desire. Selling real estate notes is not difficult, bit does require some effort on the part of the seller.