Tips on Creating Private Real Estate Notes - Selling Notes
Single Family Residences (SFR) This article is intended to help you understand how anote should be created initially to make it marketable, but secondly what factors will need to be considered by most investors to determine if the note is something they would be interested in buying.
The first step is to create the note.
The best resource for guidelines on creating a marketable note is the article by Michael Morrongiello entitled, Creating Marketable Notes.
In this article Michael outlines the major points you need to consider in creating a marketable note.
In this article I want to talk about some other factors you will want to consider as well, that could end up being problems later when you want to sell the note.
A second article worth taking a look at is one written by Lorelei Steven entitled, DivorceLiens on the Family Home, where she discusses factors that would make a note unsalable if it were created in a divorce situation between the husband and the wife.
So far both of these articles are primarily about the creation of notes on single family residences (SFR).
The basic information needed by most investors in order to give you a quote on an SFR is gathered on the page Sell A Note.
Some additional information that you should be ready to supply is:
With any note, in order to do a complete and accurate appraisal of the note, you will need to supply the following documentation.
1) A copy of the note, 2) a copy of the closing statement or settlement statement, 3) a copy of the trust deed or mortgage that secures the note to the property.
How long will it take to sale my note? It will typically take 2 - 3 weeks to be able to fund the purchase of most notes once you have provided the necessary documentation to open an escrow on that purchase.
The quicker you can provide that information, the quicker you will be able to close the sale of the note, however the more people involved in the sale of the note and the more complex the note, the longer it will take to close the sale of the note.
Other Types of Real Estate Notes and Business Notes There are numerous other types of cash flows that can be sold.
If you have a regular income stream or and investment with a lump sum balloon payment down the road it's very possible that you could get cash for that.
If you have any questions don't hesitate to ask.
Information can be provided to you on other types of real estate notes and some information on business notes to help you get a general idea of what to expect.
Vacant Land If the note you are looking to sell is secured by vacant land, this presents a bigger risk to the investor since that property is harder to resale if it was taken back in a foreclosure.
Quotes for vacant land will not be as high as for say an SFR that is owner occupied.
In addition to the basic information required to sell a note you will want to supply the following information.
The first step is to create the note.
The best resource for guidelines on creating a marketable note is the article by Michael Morrongiello entitled, Creating Marketable Notes.
In this article Michael outlines the major points you need to consider in creating a marketable note.
In this article I want to talk about some other factors you will want to consider as well, that could end up being problems later when you want to sell the note.
A second article worth taking a look at is one written by Lorelei Steven entitled, DivorceLiens on the Family Home, where she discusses factors that would make a note unsalable if it were created in a divorce situation between the husband and the wife.
So far both of these articles are primarily about the creation of notes on single family residences (SFR).
The basic information needed by most investors in order to give you a quote on an SFR is gathered on the page Sell A Note.
Some additional information that you should be ready to supply is:
- The age of the property
- The number of Bedrooms and Bathrooms
- The square footage of the home
- The square footage of the lot or the dimensions of the lot
- "Opinions" about the neighborhood, schools, shopping, and community etc.
With any note, in order to do a complete and accurate appraisal of the note, you will need to supply the following documentation.
1) A copy of the note, 2) a copy of the closing statement or settlement statement, 3) a copy of the trust deed or mortgage that secures the note to the property.
How long will it take to sale my note? It will typically take 2 - 3 weeks to be able to fund the purchase of most notes once you have provided the necessary documentation to open an escrow on that purchase.
The quicker you can provide that information, the quicker you will be able to close the sale of the note, however the more people involved in the sale of the note and the more complex the note, the longer it will take to close the sale of the note.
Other Types of Real Estate Notes and Business Notes There are numerous other types of cash flows that can be sold.
If you have a regular income stream or and investment with a lump sum balloon payment down the road it's very possible that you could get cash for that.
If you have any questions don't hesitate to ask.
Information can be provided to you on other types of real estate notes and some information on business notes to help you get a general idea of what to expect.
Vacant Land If the note you are looking to sell is secured by vacant land, this presents a bigger risk to the investor since that property is harder to resale if it was taken back in a foreclosure.
Quotes for vacant land will not be as high as for say an SFR that is owner occupied.
In addition to the basic information required to sell a note you will want to supply the following information.
- Number of acres (dimensions or Square footage if it is a lot)
- What is the land / lot zoned (Residential, Commercial, Agricultural, etc)
- What is on adjacent land or lots
- "Opinions" about the neighborhood, schools, shopping, and community etc.
- "Opinions" about the the potential use of the property
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