What is a Commercial Note Buyer?

A commercial note is one where a commercial property, such as any of the listed below, was purchased using owner financing. We would consider a business note if you sell a business that does not include real estate (business assets) and ask you to go there. Seascape Capital has been a buyer of commercial notes for land and houses. Over the years, a growing number of calls have been made for commercial notes such as the following:

  • Notes for office buildings
  • Notes about apartment buildings that have more than 4 units
  • Notes for the Church
  • Notes for auto repair shop
  • Notes for gas stations
  • Notes for Retail
  • Mixed-use property notes: For example, a retail store is downstairs and an apartment is upstairs.
  • Motel notes
  • Industrial notes

Commercial note buyers treat commercial notes differently than other types of notes, regardless of their structure.

  1. We would like to learn more about the business located there
  2. An appraiser may use a different method to value the property than for other types of property.
  3. More often, the note’s payer is an LLC or corporation
  4. The property’s use may be different, zoning may play a larger role, and there may be environmental issues that need to addressed.

Seascape, like other property buyers, will price a note on the basis of risk factors.

  • The amount of down payment and equity in property
  • History of payments
  • Conditions of the note
  • Payer credit
  • Location and property condition

Why sell to a commercial note buyer?

It was smart to sell your home using owner financing, but you may be in need of money now for things like:

  • Other properties available for purchase
  • Investment opportunities
  • Reducing debts
  • Setting up an estate

A partial is a split note that you can either sell the entire note or a portion of it. A partial allows you to sell only a portion of the payments and not all. Let’s say you have a 15 year note with a balance in excess of $200,000. You can sell the first five years of payments if you have $70,000 and keep the remainder of the note.

Steps to Selling a Commercial Note

  1. Seascape Capital is one of the experienced, competent and honest commercial note buyers. This can be done by visiting the Better Business Bureau website, reading other reviews online like on Google and speaking with them.
  2. Send an online worksheet or give us a call. You should expect to spend approximately 10-15 minutes talking on the phone with the commercial note buyer, who will be asking questions about the financials as well as about the property.
  3. After you have reached an agreement on the price of the note, the due diligence phase starts. The due diligence phase begins with the buyer of commercial notes checking the credit of the payer and looking over the documents you have sent.
  4. Next, we will order a drive by appraisal. This usually takes between 7-10 days. Rarely, we might request a complete commercial appraisal. This can take much longer.
  5. After the appraisal has been approved, we will order a commitment for title. This takes between 7-10 days. We try to use the same title agency that you used to sell the property whenever possible.
  6. We send you the closing documents to wrap up the transaction. These documents are signed by you and returned with the original deed and note.
  7. Once we receive the assignment, we register it with the county and send the funds to your account.

This usually takes between 3-5 weeks from Step 3 to Step 7.

Seascape is an experienced buyer of commercial notes and has been doing so for more than 20 years. We will offer you the best price and exceptional customer service. Call us to get started or fill out our online form .