Five Things That Add Value When You Sell Your Note

If you're looking to sell your real estate note you want the best price available. As note buyers we try to strike a balance between giving the seller good value for the note and realistic business interests. That's why this site includes resources to help you decide whether it's in your interests to sell your note to us. What kinds of notes get the best prices?

Here are five common factors:

Good Payor Credit: If the payor has a good general credit score and has made prompt, regular payments on the note that boosts its value. It's just common sense. The more the note looks like it will continue to get regular payments the better valued it's going to be.

Higher Interest Rate: Naturally, notes with higher interest rates are a better value, especially in the post-housing bubble market environment where inflation is shrinking. Note, however, that this factor exists in connection to others. Big monthly payments don't mean much when there isn't a secure payor.

Seasoning: Seasoning is the number of monthly payments on the note. This is a bit of a balancing act, because we want notes with enough seasoning to provide their reliability, but of course, the less money owed on the mortgage, the less value it has.

Shorter Terms: The shorter the payment term, the more valuable your note is. First, there's less likelihood of any special situations interrupting changes in the long term. Second, a shorter term minimizes the effects of inflation on the straight dollar value of the note.

Straightforward Conditions: The note needs to be clearly drawn, with eccentric conditions kept to a minimum. There are a lot of strange private loan instruments out there. You have a great deal of freedom to negotiate a private note, but don't let it go to your head. You may trigger legal problems or find the note harder to move if you decide you want to sell it.

The more secure and valuable your mortgage note seems, the more you'll get paid. Remember, you can always contact us with questions about selling a particular note, and you can request a real estate note quote.


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