Looking for a note buyer. How important is the payment history on my note I am selling?

Very Important.

Payment history is another important ingredient in the pricing of a real estate note.

In regards to Payment History, A real estate note is typically classified into 3 categories:
1) Perfect pay history
2) Spotty pay history - but currently Up-to-date
3) Defaulted Note.

That's it.

3 categories.

The most valuable notes are the ones that have a "perfect" pay history.
The fact that they have a perfect pay record usually means that the note holder is very
happy hanging onto the note because the payments come in like clock work...

Often the only time a note holder considers selling their note is when the payments stop coming in like "clock work."

This is often the wrong time to sell your note.

The note payment history issue is this: Your note will be classified into the 3 categories listed above.

...and it will be priced accordingly.

Lower discount for perfect paying notes.
Bigger discound for spotty pay history notes.
Humongous discount for defaulted notes.

Moral: Don't let your note payor miss a payment!

Once they miss a payment (for any reason) it becomes a "spotty" pay note.

Get the most for your notes - keep on top of your note payors.



Most note holders start thinking about selling their note when the payors begin to have trouble making their payments on time...

Looking for a note buyer?