"What is the value of my real estate note?"

Typical quotes from various note sellers...

"I have a 12% interest rate note. Surely, due to the high interest rate, this note will be worth top dollar."

"My real estate note is secured by an owner occupied single family house. This must mean I will get the highest price."

"My note is secured by property I sold in Detroit. Does this kill my ability to sell my note?"

"I sold the property 13 years ago. With this incredible seasoning of the note, shouldn't I get the most money for my note?"

"My note is scheduled to pay off in 42 years. This must make my note extra valuable."

"The credit report on the payor of my note is very good. The balance on this note is about $40,000. Does this mean you will pay more than $40,000 for my note?"

The quotes go on and on...

The bottom line is note holders simply want to know what their particular note is worth if they were to sell it today.

Most note holders try to focus on just 1 aspect of their note and assume that the value of their note is determined by this single "important" factor.

This is not the case.

All notes are NOT valued based on a single factor.

The value of your seller financed note is determined by 13 factors.

13 inter related factors that when looked at as a whole, determine the value of your note should you want to sell it for cash.

Your note value is NOT determined by just 1 or 2 of the ingredients that your note is made from.

Want to know the value of your note? Call me 206-838-8133 Tom. We can chat about the 13 ingredients that make up your note - only takes about 3 minutes.

PS - If the property you sold is in Detroit, that is a deal killer for me...

I am a real estate investor. I buy houses, fix and flip them and sometimes carry the note...

Q: Will you buy this type of Note?

A: Nope. I am not interested in buying "flipper" notes. 5 years ago, there
where about 8-9 other note buying companies that loved to buy these "flipper"
deals.

The usual scenario in this type of "flipper" deal is as follows:

1. Investor buys house at foreclosure or tax sale for $20,000.
2. Investor paints house and puts new front door on.
3. Investor re-sells house for $130,000 to person with a "good" credit score but
has no job or no income.
4. Sale of house is usually a nothing down transaction.
5. Investor now tries to sell the seller financed note to a note buyer.
6. Note buyer buys the note for $100,000.
7. Person who bought the house (payor on the note) defaults after 1 payment to
Note buyer.
8. Note buyer has to foreclose.
9. House only worth about $40,000.

All of the note buying companies that used to buy this type of "flipper" note deals
are no longer in business.

I don't buy this type of note on this type of scenario.

We buy seller financed real estate notes. What does that mean?

Real estate notes are sometimes referred to as:
promissory notes
trust deeds
real estate contract
mortgage note
sales agreement
contract for deed
installment land agreement
etc.

The simple definition: If you sell real estate (house, land, commercial) and you
owner finance the buyer (which means you become the lender for the buyer) then this note that you have created, is what I like to buy.

I cannot buy every note. Some are simply not worth buying.

Some real estate notes might have poorly worded clauses in them.

Some notes have defaulted, bankrupt borrowers - which make it tougher to buy
the note.

Some notes are secured by real estate that doesn't make sense (like a landfill that
stores hazardous waste).

But, by and large, about 80% of the notes I see, I am able to at least make the note
holder an offer for their note. That doesn't mean my offer will be accepted.

Anyway, Hope this answers the question about what are real estate notes.