You know you won’t get the full face value for your note, but will there be other fees you have to pay too? How do you know if the buyer is reputable? What is a normal discount on a note? Here are some guidelines to follow: 1. You should be able to find many note buyers who will check your buyers credit and give you a quote without charging you. He’ll just be making those payments to somebody else. 3. How To Make Money With Real Estate Ask questions about anything that isn’t clear. Note buyers will look at these differently though.. When you get a quote you like, you’ll have to send copies of the Mortgage or Deed of Trust, the Note, the closing or Settlement Statement, and the Title Policy. How To Make Money With Real Estate Suffice it to say, they need to make money on the deal, and you should be sure you have a good use for that cash before you sell those real estate notes. This is called “bait and switch,” and it isn’t ethical.
People sell real estate notes to raise cash quickly. No other fees, with a couple exceptions. Rich Dad Get Top Dollar When You Sell Real Estate Notes Notes with a balloon payment get a higher price. The first and second place notes can’t add up to much more than 70% of the value of the property, or you’ll be looking at a steep discount Discounts, by the way, will almost always seem steep. You can sell the entire contract, or just a certain number of payments if you want. A real estate note is just the loan document created when you financed the sale of your house or investment property. Processing time varies, so ask. Contact several note buyers for quotes. “Seasoned” notes sell for more too. First, you may have to pay for the appraisal.
Real Estate Notes It is common for note buyers to pay 20% to 30% less than the current balance on the note. Selling real estate notes can be an intimidating process. Usually, once you agree to the offer and send the documents (if done by mail), you can expect to receive a certified check or electronic transfer to your account within two to three weeks. No upfront fees. Rich Dad Real Estate Seminar Those are notes that have had payments made on them for a while. 2. 5. If they ask, go someplace else. Real Estate Make Money You can sell second mortgage notes, and other second-place real estate notes as well. I’ll let them explain why.
Be sure that the note buyer gives you a written purchase agreement with the purchase price and contingencies. The point is that the buyer is making payments to you, and you want to. Buy Real Estate Notes