Note Sale Options
When most people think about selling their real estate note they only consider selling all of the remaining note payments. The truth is, most note holders have multiple sale options available to them and there are many situations where selling only a portion of your note payments, rather than all of them, will provide the best financial results. This is why it is important for you to know what your note sale options are and to conduct business with a company that will look out for your interests.
Full Sale Option
Our full sale option is the most popular with note holders. There are many situations where note holders can only accomplish their goals by selling all of their remaining note payments.
- When the note holder needs to generate as much cash as possible from the note sale.
- When the note holder wants to sever all legal ties and financial responsibilities from the note investment.
- When the note holder wants to liquidate the entire note investment to settle an estate, provide funds for elder care or qualify for Federal Medicare assistance.
- When the note holder wants to eliminate servicing hassles and risk of foreclosure associated with owning a note.
Partial Sale Option
For most note holders the option of selling a portion of their remaining note payments, rather than all of them, will best accomplish their goals and provide the highest total dollar return. In some situations, the characteristics of the note and/or the value of the property securing it make selling all of the remaining note payments impossible. In those situations, the note holder can still take advantage of our partial sale options to generate the cash they need.
- When the borrower has a poor credit history.
- When the note has a low interest rate.
- When the note has a long remaining term.
- When the note has an upcoming balloon payment due.
- When the borrower has a small equity position in the property. (This is common with a new note, a note where the borrower made a small down payment, or a note in an area where property values have fallen since the note was created.)
In other situations, selling a portion of the remaining note payments is clearly the best financial option for the note holder. Our partial purchase proposals offer several significant advantages over selling all of the remaining payments due on a note.
- In situations where it's not possible to sell the entire note, a partial note sale allows note holders to access a portion of the cash tied up in their note investment.
- A partial note sale gives note holders the ability to generate a specific amount of cash now, while also retaining a significant investment in the note for future income.
- A partial note sale will allow the note holder to customize exactly what selling their note achieves for them.
- A partial note sale will allow the note holder to minimize the discount involved in accessing cash from their note. Selling the up front payments will involve a discount, but note holders will receive 100 cents on the dollar for the note payments they keep.
- A partial note sale will result in the note holders receiving a higher total dollar return from the sale of their note.
Note holders who choose to sell a portion of their note payments achieve the best of both worlds; the capital they need and a valuable residual interest in the note for future income. If you are in position to take advantage of a partial sale of your note you should seriously consider the option.