| Q: |
"Why Should I Sell My Real Estate Note?" |
| A: |
After you sell your mortgage note you won't have to worry about:
- Abandonment of the property.
- Assumption of your note by another payor.
- Bankruptcy of the payor.
- Collecting the payments.
- Default and foreclosure.
- Deficiency judgments.
- Destruction or devaluation of the property.
- Divorce or death of the payor.
- Federal income tax reporting requirements.
- IRS tax liens/other liens against the payor.
Or, you may have a need to raise capital but don't have time to deal with an institutional lender.
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| Q: |
"How Much Will I Get For My Note?" |
| A: |
The value of a promissory note is determined by things like:
- Interest rate.
- Note position - 1st, 2nd.
- Number of late payments, if any.
- Number of payments remaining.
- Payor's credit rating.
- Presence of a balloon payment.
- Structure of the note and mortgage.
- Type, condition, and location of the property.
Because there isn't a standard percentage or a fixed discount rate, each note will be reviewed and priced based on its own merits. |
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| Q: |
"Will Selling My Note Have Any Effect On The Payor?" |
| A: |
No. All of the conditions, rates, and terms set forth in the original note and mortgage will remain in force. The only changes will be who receives the future note payments and where they are sent. |
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| Q: |
"Can I Sell A Portion of My Note Payments?" |
| A: |
Yes. This is called a "partial purchase". In some cases you may require only a specific amount of cash to make a purchase, handle an emergency, etc. In this case you might choose to sell only a few years of the payments to receive the specific amount desired. |
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| Q: |
"Will I Need To Attend The Closing?" |
| A: |
Not necessarily. We can close the transaction by sending you a closing package by overnight courier. |
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| Q: |
"Do You Buy Non-Performing Mortgage Notes?" |
| A: |
Yes, but it will depend on why the note is currently non-performing. For example the property must be in salable condition as-is and not require any renovation. |
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| Q: |
"Do You Buy 2nd or 3rd Position Notes?" |
| A: |
No. We will only consider 1st position mortgages. |
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| Q: |
"What Types of Real Estate Do You Consider?" |
| A: |
We purchase performing mortgage notes backed by all types of real estate including commercial property (corporate payor), condos, farmland, hotels, light industrial commercial, mixed use, mobile homes with land, multi-family properties, office buildings, raw or improved land, recreational, retail commercial, retail shopping, service stations, single family residential, etc. Please be aware that we do NOT buy rehabber, developer, or church notes. |
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| Q: |
"Will I Receive The Unpaid Note Balance?" |
| A: |
No, we do not pay face value or "par" for mortgage notes. All notes are bought at a discount.
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| Q: |
"What Options Do I Have When Selling My Mortgage Note?" |
| A: |
Full Purchase: You sell all remaining note payments for a lump sum of cash.
Partial Purchase: You sell a fixed number of note payments for a lump sum of cash while retaining rights to the remaining payments after our interest is satisfied.
For example, we may offer to buy the next 80 payments out of a 180 month note. We would receive the next 80 payments and then the note would be reassigned to you with 100 payments left to collect. A partial sale is often the best choice if you only need a certain amount of cash and don't mind waiting for the remaining payments.
Split Purchase: You sell a percentage (usually 50%) of a specific number of future payments. So if the monthly payment is $1,000. then you would receive $500. and we would receive $500. |
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| Q: |
"Will You Still Buy My Note If There Are Late or Missed Payments?" |
| A: |
Yes, we can still buy your note. Late payments are only a concern if they are paid later than 30 days past the due date. If your tenant has skipped a payment and the missed payment is within the last 12 months then we'll need to know what caused the problem. |
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| Q: |
"Do You Fund Simultaneous Closings?" |
| A: |
No. We require there be at least 36 months of seasoning on all notes. |
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| Q: |
"How Much Is This Going To Cost Me?" |
| A: |
There is no charge to the note holder. Should we agree on a price, we will pay for all closing costs associated in the sale (appraisal, credit reports, title work, etc.) |
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| Q: |
"I Know Someone Who Wants To Sell Their Note, Do You Pay For Referrals?" |
| A: |
Yes, if you refer someone who wants to sell their note and we successfully purchase that note, then we'll pay you a finder fee. |
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| Q: |
"Do You Buy Lease With Option To Purchase Contracts?" |
| A: |
Yes, but with certain conditions. We'll help you convert the Lease With Option To Purchase contract into a mortgage note that we can buy. We can use the lease agreement to establish seasoning just as long as the terms on the conversion documents are not changed. |
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| Q: |
"What Is Required For A Quote?" |
| A: |
Simply fill out our online application form and we'll provide you with an appraised cash value as well as offering you selling options that you may not have known were available. There's never an obligation to sell your note. |
