A real estate note is just the loan document created when you financed the sale of your house or investment property. Second, if the property appraises at less than the sales price, you may have to pay for the title policy, if there are problems with the title that prevent purchase. I’ll let them explain why. Higher interest rates and shorter loan periods will get you more money too. The first and second place notes can’t add up to much more than 70% of the value of the property, or you’ll be looking at a steep discount Discounts, by the way, will almost always seem steep. Buy Real Estate Notes You know you won’t get the full face value for your note, but will there be other fees you have to pay too? How do you know if the buyer is reputable? What is a normal discount on a note? Here are some guidelines to follow: 1. Selling real estate notes can be an intimidating process. The buyer has already figured his expenses before making the offer, so there are only a couple fees you should have to possibly pay. 3. This is something to consider before you sell the house, if you think you might sell the note in the future. Rich Dad Real Estate Seminar “Seasoned” notes sell for more too. Unscrupulous buyers can quote one price initially, and then lower it later, using the excuse of the property buyer’s bad credit score.
If there is no recent appraisal, they will usually arrange for that. You should only pay exactly what these cost the note buyer though. Be sure that the note buyer gives you a written purchase agreement with the purchase price and contingencies. Making Money With Real Estate It is common for note buyers to pay 20% to 30% less than the current balance on the note. 5. It could be a mortgage note, or a land-contract or contract-for-sale. When you get a quote you like, you’ll have to send copies of the Mortgage or Deed of Trust, the Note, the closing or Settlement Statement, and the Title Policy. Some note buyers will buy new or “unseasoned” notes, but if you can wait until six payments have been made, you’re likely to get a much better price. Sell Real Estate Notes 6. You can sell the entire contract, or just a certain number of payments if you want. He’ll just be making those payments to somebody else. You should be able to find many note buyers who will check your buyers credit and give you a quote without charging you.
7. Rich Dad Poor Dad This is called “bait and switch,” and it isn’t ethical. If they ask, go someplace else. Usually, once you agree to the offer and send the documents (if done by mail), you can expect to receive a certified check or electronic transfer to your account within two to three weeks. Those are notes that have had payments made on them for a while. 2. Rich Dad No upfront fees. Contact several note buyers for quotes. The point is that the buyer is making payments to you, and you want to cash in. Suffice it to say, they need to make money on the deal, and you should be sure you have a good use for that cash before you sell those real estate notes. No other fees, with a couple exceptions. Ask questions about anything.