I repeat many times that the note business is a “niche industry” in the real estate industry. There are many folks in the real estate field that have no idea what we do.
To illustrate how niche we are, let me refer to a 2022 report provided by Scott Arpan, owner of Advanced Seller Data Services. Scott provides statistics to the note industry. Based on 2021 data from 2236 U.S. counties, counting 1st position owner carry notes with a minimum balance of $30,000, here is what Scott found:
89, 678 notes were created. 84% of these were created by a seller doing just 1 note – not multiple notes. The average loan-to-value was 77% for residential notes, 71% for commercial notes, and 70% for land notes.
Where are these notes being created? Here are the Top 5 states:
- Texas 23.1%
- California 9.9%
- Florida 9.4%
- North Carolina 5.0%
- Arizona 4.9%
We are truly a niche industry. With my investors, we purchase notes in these states and all other states. We focus on owner carry, 1st position, performing notes secured by residential or commercial property – or a business. We can help if you are interested in securing cash for your note or want to have a conversation about possible terms for a property sale you are considering. We are here to help, call me.