Sell Real Estate Notes For Top Dollar


Sell Real Estate Notes For Top Dollar

Sell Real Estate Notes For Top Dollar
People sell real estate notes to​ raise cash quickly .​
a​ real estate note is​ just the​ loan document created when you financed the​ sale of​ your house or​ investment property .​
It could be a​ mortgage note,​ or​ a​ land-contract or​ contract-for-sale .​
The point is​ that the​ buyer is​ making payments to​ you,​ and you want to​ cash in.
You can sell the​ entire contract,​ or​ just a​ certain number of​ payments if​ you want .​
The buyer of​ your property will have the​ same terms and payments .​
He'll just be making those payments to​ somebody else.
Selling real estate notes can be an​ intimidating process .​
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 .​
No upfront fees .​
If they ask,​ go someplace else .​
You should be able to​ find many note buyers who will check your buyers credit and give you a​ quote without charging you.
2 .​
No other fees,​ with a​ couple exceptions .​
The buyer has already figured his expenses before making the​ offer,​ so there are only a​ couple fees you should have to​ possibly pay .​
First,​ you may have to​ pay for the​ title policy,​ if​ there are problems with the​ title that prevent purchase .​
Second,​ if​ the​ property appraises at​ less than the​ sales price,​ you may have to​ pay for the​ appraisal .​
You should only pay exactly what these cost the​ note buyer though.
3 .​
Be sure that the​ note buyer gives you a​ written purchase agreement with the​ purchase price and contingencies .​
Ask questions about anything that isn't clear.

4 .​
The note buyer should check the​ credit of​ your property buyer upfront .​
Unscrupulous buyers can quote one price initially,​ and then lower it​ later,​ using the​ excuse of​ the​ property buyer's bad credit score .​
This is​ called bait and switch,​ and it​ isn't ethical .​
5 .​
Contact several note buyers for quotes .​
You'll need to​ provide information like the​ type of​ property,​ sale price,​ payment amounts,​ current balance,​ etc .​
They should respond within a​ day or​ two.
6 .​
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 .​
If there is​ no recent appraisal,​ they will usually arrange for that.
7 .​
Processing time varies,​ so ask .​
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.
Get Top Dollar When You Sell Real Estate Notes
Notes with a​ balloon payment get a​ higher price .​
Seasoned notes sell for more too .​
Those are notes that have had payments made on​ them for a​ while .​
Some note buyers will buy new or​ unseasoned notes,​ but if​ you can wait until six payments have been made,​ you're likely to​ get a​ much better price.
Higher interest rates and shorter loan periods will get you more money too .​
This is​ something to​ consider before you sell the​ house,​ if​ you think you might sell the​ note in​ the​ future .​
You can sell second mortgage notes,​ and other second-place real estate notes as​ well .​
Note buyers will look at​ these differently though .​
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 .​
It is​ common for note buyers to​ pay 20% to​ 30% less than the​ current balance on​ the​ note .​
I'll let them explain why .​
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.






Related Posts:




Powered by Blogger.