The question I get most frequently in my first conversation with a note seller goes something like this: “I’ve never sold a note before, can you tell me how this works?”
Most notes created today are by people who will never create another one. So, this is unchartered territory for many folks, and it is easy to understand why a person would be a little uncomfortable simply because the business of buying and selling notes is alien to them.
If you are one of those folks, let me say the process is low key. The goal is to determine if your note is marketable and then give you pricing options to consider. Here are the steps:
1. Send me a copy of your note and closing statement so I can verify the terms of the transaction.
2. I will then ask you questions about the property you sold, the people you sold it to, and the note itself.
3. Call you back in 1-2 days with one or more pricing options.
4. If you accept, we will do our due diligence, collect the necessary documents, and close the transaction.
5. In approximately 30 days, you will receive a check for the agreed upon price. You are out of the note.
6. The note terms usually stay the same, your buyer is now paying us instead of you.
Simple. In essence, cash is being exchanged for cash flow. You desire cash, the note buyer desires cash flow.
You can call me anytime to discuss your note situation, even if you are not ready to sell. Get yourself educated.
