We are back with our series “Selling a Real Estate Note 101”. You should have a good understanding of the basics of a mortgage note. Also, you will have an idea of how to sell your mortgage note. Call us if you have any questions.

After we have covered the basics, let’s go over the important tips and tricks for selling a mortgage (also known as a real-estate note or promissory notes) and how to make a mortgage note to be sold in the future.

Top tips for Selling a Mortgage Note:

1. Before you begin requesting quotes, familiarize yourself with the process for selling a mortgage loan. Learn how to determine the value of your note and what to expect from a buyer. It will make it easier to negotiate the sale of your note by having all your documentation and any questions ready for potential buyers.
2. Consider all options. Every mortgage note is unique. A partial, which is a sale of only a portion of your mortgage payments, may be more beneficial for you and offer a higher rate return. You can get help from a trusted and reliable note buyer to determine the best options.
3. As these fees are already included in the purchase price, verify that there aren’t any upfront fees for the seller.
4. To avoid sudden drops in price quotes because of credit problems, make sure that the mortgage investor checks the credit history of the buyer/payor.
5. If possible, review your purchase agreement with a Real Estate Attorney.

Tips for Creating a Mortgage Note For Owner Financing (also known as Seller Financing):

You may be considering selling a note you currently have. There are many reasons people choose to finance their property with owner financing. These include attracting more buyers, offering flexible terms (often this is the case for buyers who cannot obtain financing through banks), and managing a sale among family members or as part a divorce agreement. These tips will help you to create value and structure your mortgage note in order to maximize the sale of owner financing.

1. The greater the down payment, it is better. A down payment of 10% for residential is the ideal amount, and 20-30% for commercial.
2. The better the equity, the more you can get. This can be achieved in part with the principal and down payments mentioned above. This adds value the mortgage note.
3. Always consider the credit score of the buyer. The credit score should be at least 600. Your credit score can have an impact on the note’s value and may play an important part in determining the down payment you will need to protect your property.
4. You should ensure that the sales price matches current market values, and that interest rates are comparable with bank rates.
5. The condition of the property is an important factor in determining the value of your note. If the property is in good shape, well-maintained and in an area that is easily accessible to power or water (if it is a land contract), then it will have a higher value.

These tips will help you sell your mortgage today or in the near future. We would love to hear from you about your experience selling notes or to discuss any other topic of interest. Please leave comments below. Thank you for reading, and feel