Trying to understand Real Estate Notes.

[Marven Alceus]

I think I have an understanding on what notes are but please let me know if I'm wrong.

If I get a mortgage for a property that mortgage document is the note.

Now I have the option to sell this note.

Question, so if I had bought a property for 100k paid my 20% down payment. Leaving the bank to lend me the rest 80k (my mortgage). Let's say I paid 10k to the mortgage leaving 70k left. Then I sold the note, would that person then be in the same position having 30k paid off and 70k left. How to I benefit for selling it?

Hopefully I'm somewhat right? I don't know!

[Tim Fitzgerald]

As Bill Mencarow related well over, I think, 25 years ago (I am paraphrasing), and I concur:

As a note investor, it's amazing as to the # of calls I get from people who are PAYING on a note (NOT holding a note) and think they can "sell" it [to relieve themselves of the obligation to continue paying on it]

Not sure how or why they could think that...

Anyway, one of my first questions whenever I get a call is: "Are you collecting payments on a mortgage now?" I let them know that I am only interested in beginning a conversation IF the answer is affirmative.