Why Would You Want to Sell Your Note?

This is a question that many who hold a real estate note as an investment may ask at one time or another. It's a good and valid question too.

There may be many reasons to sell a note or even to find a way to pull money out of that note. Anyone with a note is also aware of the value of it as an investment.

Therefore you should not just sell a note because someone offers cash.

A simple question must be asked; “What is going to be done with that cash?“ If there is a need for cash then we can decide if it is best to pull that cash from the note or just get a loan.

Let’s look at those options and compare:

Borrow from a local bank for the cash needed: This is a common option for anyone who needs money and in today’s world it may come at a fairly low cost. There are a few different things we must look at when contemplating this option starting with personal credit. If you have good credit and understand its importance then you know that it should be cared for.

Your good credit is power for obtaining your needs in this life. Any loan activity has an affect on your credit score. While using credit will help build it, overusing it can also cause a worrisome issue. Your debt to income ratio will be affected when a loan is procured from traditional resources such as a bank.

We must also understand that when borrowing from a bank THEY are the ones gaining. You're paying the interest rather than receiving. Now as an investor you know that we want to be on the other end of that transaction. This can be accomplished by “borrowing” from your own assets.

Borrowing from your note: If you procure the money from your own note then it does not affect your credit in any way. It will not show on your debt to income ratio. It will not show as a debt being paid and the only thing you have to figure is your total return on your investment.

If you can take money out of a debt being paid to you and not affect your credit while satisfying the need you have you simply increase your assets. This can be accomplished in many different ways. All you have to do is determine what you need is and then start the research to find out how little it will cost you!

Call us today and let us provide you a solution!