I am selling my note. Does it matter where the real estate is located?

Yes it does.

Desirability. Attractiveness to a potential buyer. It all counts for something.

Question: Would you rather own a real estate note secured by a nice house located
in Newport Beach, CA.
Or, would you rather own a real estate note secured by a nice house in Akron, OH?

Where the propety is located is part of the equation in pricing your real estate note.

A better example in regards to property location affecting the value of a real estate note would be this:

A guy sold 70 acres of land in Lost Springs, WY for $20,000 and carried back a real estate note for $10,000. (he got a $10,000 cash down payment - nice!)

The interest rate is 10% and the borrower is a goold ol' guy.

So, what's the problem?

Lost Springs, WY is "out in the sticks."

Actually, it is way past the sticks.

Lost Springs, WY has a population of 1.

It's nowhere.

1 person lives in this city. He is either very happy, or very lonely.
















If our borrower happened to default, we just don't have a lot of potential buyers of the 70 acres...

PS I didn't tell you that it took the seller 4.5 years to sell the property.