Selling a commercial note to an investor who has already bought notes from another company is difficult.

Commercial notes have many similarities to other kinds of notes, but they also have some unique qualities. If you’re thinking of selling commercial notes, you might already know that commercial buyers generally look for these specific traits when evaluating notes:Notes on apartments with more than 4 unitsIndustrial notesWhen using notes, be sure to include details that help others understand what they’re reading.Office building notesWe specialize in special use property loans for real estate investors.Can be used for different purposesIt’s important to compare property values with similar properties in the neighborhood.The note is usually signed by an LLC or Corporation rather than by an indi­vidualYou need to consider more than just aesthetics when planning for a new development.

Getting the Best Price for Your Note

A good down payment of at least $10-$20There are no other large liens or mortgages against the house.Make sure there is personal guarantee on the business contract rather than the customer signing as a member of any LLC or corporation.A high credit limit will help improve your credit rating if you have a good FICO score.A good track record of paying past bills on timeNotes are usually the property of the borrower and don’t include the bank’s interest.Other things like proper preparation of documents, the appearance of the house, whether the business is doing well, etc.

Selling a Commercial Note

Try contacting three reputable sellers who have been reviewed by the Better Business Bureau (BBB) or similar organization.When they ask for the payment details, provide them with the required information, and wait for their offer within 1-2 business day. They may be willing to purchase the full note or just part of the payments.After agreeing on a price, you will need to submit copies of the required documents and provide other details.A commercial mortgage broker will review the loan application, issue a preapproval letter, and later ask for a property inspection report.After completing due diligence, you will receive assignment documents from the investor. You must then complete them and send them back to the investor.Once the assignment has been completed, the county sends the payment to you. It usually takes between four and five weeks for the payment to reach you. Because each loan is different, the time it takes to complete the closing may sometimes exceed five weeks.