A lot of note holders are curious about the process of selling a note. Here are a few key questions I get from time to time:
Question: I live in a different city and state than you. How do you handle the closing when I am so far away?
Answer: We will close at the same Title Company office you used when you sold your property. Or, we can overnight the closing documents with an instruction letter directly to you. You sign the documents in front of a notary and overnight to us.
Question: How do I receive my funds?
Answer: The funds will be wired to the Title Company we are closing with or sent directly to your account.
Question: How is my buyer affected when I sell my note?
Answer: He is not. Remember, you are selling the note terms agreed to. The only change is where your buyer sends his monthly payment.
Question: I like my buyer and the monthly income, but I have a cash crunch. How can I use my note to get the cash I need?
Answer: You need options to consider, and one option is to sell part of your note. Let’s say your note term is 240 months, you have received 10 payments. You could sell, for example, 50 or 100 of the remaining 230 payments, then retain the right to receive the balance of 180 or 130 payments. You would compare this option to other cash sources you have, then make the best decision for you.
Question: I really don’t need the cash. Why should I sell my note?
Answer: You shouldn’t. Don’t sell until you have better use of the cash. In the meantime, read my Newsletter and call me when you are ready.
