Selling Part of a Note...

It is important for those who hold a Cash Flow to understand the possibilities available if cash is needed. There may be several different reasons for a person to pull money out of a real esate note. There are just as many possible ways to structure it or more.

Here are some examples:

Example A- Martin is self employed and had a much better year last year with his business than he thought he did. This is good for the business of course but presents a problem when tax time comes around. Now he has to pay $15,000 more in taxes than expected!

Martin has a Mortgage note from a piece of property he sold a couple years back but the note balance is near $70,000 and is giving him 9.5% on his money. Martin needs to pay his taxes but selling such an investment seems a bit rash.

The solution is one of the simplest ways to “take an advance” from his note. We can arrange to buy some of the payments giving him the money he needs now but leaving the majority of the note for the future. In fact the principle balance hardly changes at all!

Example B- It is possible Kevin has a need for those payments right now. If he sells the payments then he will not be able to pay for that new car he just bought.

We can give Kevin the cash he needs now in return for any part of the payments on the loan. That’s right, we will give him cash now and wait for our return down the road. The results to the principal and total received will still be similar showing a very small loss if any of your principal.

Example C- Mary has a cousin who has a need for cash and also holds a note from a previous sale. It sounds like Mary has a smart family. Mary’s cousin Bill however uses his note to pay his mortgage payment.

If he sells the note for cash he will not have the money to pay his mortgage. This example would require sharing the note rather than selling it.

The investor who purchases such a note will offer to buy only part of each months payment leaving the other portion of the payment to pay for the mortgage. Thus with this “split purchase", Bill gets his cash now and still has enough to help with the mortgage.

HOW TO PROCEED...

If you have need for cash at this time but you do not need to sell your entire investment in order to fulfill your need then there is a solution. We can structure a purchase for any need there is. Just give us a chance to look at yours.

We are able to present offers in many different ways so that our clients are able to move on with life in the way that is most desired. If for any reason our clients do not want to sell their entire note we can structure a purchase that will work.

The first step is for us to prepare a FREE evaluation of the note in question. We will evaluate the note based on some of the factors listed below:

• Collateral on the note

• Equity(LTV)

• Payor Credit (does not have to be perfect)

• Pay history

• Current interest rate on the note

• Current market rates

What the evaluation will include...

Our free evaluation will include quotes from several of our business partners who currently have interest in such notes. These quotes will be arranged to show a general idea of the note value. We will also provide tips on how to better care for or arrange the note if needed.

Part of this evaluation will be to let you know about current rates from the industries top investors and our evaluation price, which will usually be above others in the industry.

This evaluation will allow you to know the true value of your investment and how to improve it or sell it if the need is there.

Call us today for your free evaluation.