Accepting payments on the sale of your real estate probably made sense at the time, but circumstances change. As a result, you may be wondering if now is a good time to “sell my mortgage note?”
At times, note sellers discover they would prefer to sell their note for a lump sum of cash today, rather than a small amount that trickles in each month.
The Good Stuff Comes First
Like a dessert topped with hot fudge, a note that “amortizes” means the early payments you receive are mostly interest. It’s like the best part is on top.
As long as this is happening, the loan balance reduces slowly. But after a while, you earn less interest each month. The balance decreases more quickly. As you get closer to the loan maturing, payments are made of very little interest and mostly principal.
Is Your Money Working As Hard As It Should?
There are people who work for money and others who make their money work for them. How much interest are you earning on your note? Would investing that money elsewhere make your money work harder for you?
While of a different type, even investments like home remodeling, education and family vacations pay interest.
So… Should I Sell My Mortgage Note?
There are many reasons people sell all or part of their mortgage notes for cash:
- Investment Opportunity
- Expensive Medical Care
- College Tuition
- Unexpected Financial Changes
- Peace of Mind – no more worrying about the borrower defaulting and having to foreclose
- Accounting headaches, IRS regulations, paperwork hassles, and the list goes on…
Get The Details
Knowing the value of your note is just part of what we provide.
We consult on the important aspects of owning a note so that you can make the most informed decision possible. The truth is, we provide far more note analysis reports (at no charge to noteholders) than the number of notes we purchase each year.
We’re fans of seller financing and believe in supporting it however we can.
Discover Your Options – Request a Free Note Analysis
The only way to decide what is best for your situation is to know your options. Are you better off selling your note? Selling a portion of your note? Or keeping it?
When you request a free note analysis it reveals the current market value of your payments – similar to what a real estate appraisal provides for real property. Sometimes referred to as a “note appraisal,” it lets you know how much your future payments are worth in cash dollars today.
We recommend having your note reviewed annually, as note values change based on market conditions.
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