Priorities of a Note Buyer
Typically, buyers consider their risks in three general ways. #1. Time-Value of Money. The note buyer's primary concern comes from the principle regarding the t ...
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Services for Real Estate Pros |
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| Mike Eaton, Jr. | ||
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Get to Know Mike Eaton, Jr.
I am part of a growing industry specializing in working with professionals and individuals alike to find creative cash solutions; namely, I help note holders receive a lump sum of money in exchange for their secured real estate notes.
Once a real estate note is created through the use of private or seller financing, it can be sold for cash shortly after the close of escrow. Existing notes can also be sold to achieve cash liquidity for any financial need or objective.
The Note Buyer Market
The majority of seller-financed mortgages are sub prime loans; as such, they are considered by banking standards to be high risk. As a result, many lending inst ...
Why The Discount with Real Estate Notes
A discounted purchase price does two things: it limits the amount of capital the buyer has tied up in that mortgage, and it reduces the amount of money the sell ...
Market Pricing for Real Estate Cash Flows
Banks and other financial institutions purchase cash flows on a regular basis. These payment streams are often purchased without a discount. Aside from a change ...
Certifications
Simply put, a note is a written document that specifies a promise to pay. The terms of the payment agreement and the parties involved are stated in the note. The terms usually include the amount owed, the interest rate, and the length of time or schedule of the payments.
You can think of a note as a "promissory note" or as a formal "IOU". It is a credit instrument that documents a debtor's obligation to pay. A note can also be referred to as a "cash flow", because that is literally what it describes - a flow of cash from one party to another.
A secured real estate note has a separate document that ties the obligation of the payer to the note holder (mortgagee, trustee) to a specific piece of property. This additional document is called a mortgage, trust deed, deed of trust, or land contract depending on the area of the country. All of these names describe the same legal document - a security instrument.
The security instrument provides the legal evidence of the pledge of real estate as security while the note provides the credit instrument or the promise to pay. So, the mortgage or trust deed is drawn up to specify what property's ownership will be subject to the proper payment of the note.
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I work with individuals and professionals involving private or seller financed real estate notes. I can help note holders liquidate their real estate assets (paper) for cash.