Be sure that the note buyer gives you a written purchase agreement with the purchase price and contingencies. 6. 2. It could be a mortgage note, or a land-contract or contract-for-sale. Real Estate Notes This is called “bait and switch,” and it isn’t ethical. I’ll let them explain why. Suffice it to say, they need to make money on the deal, and you should be sure you have a good use for that cash before you sell those real estate notes. The buyer has already figured his expenses before making the offer, so there are only a couple fees you should have to possibly pay. Rich Dad Second, if the property appraises at less than the sales price, you may have to pay for the title policy, if there are problems with the title that prevent purchase.People sell real estate notes to raise cash quickly.
7. 3. Sell Real Estate Notes When you get a quote you like, you’ll have to send copies of the Mortgage or Deed of Trust, the Note, the closing or Settlement Statement, and the Title Policy. Ask questions about anything that isn’t clear. If there is no recent appraisal, they will usually arrange for that. The first and second place notes can’t add up to much more than 70% of the value of the property, or you’ll be looking at a steep discount Discounts, by the way, will almost always seem steep. Rich Dad Poor Dad The buyer of your property will have the same terms and payments. You should be able to find many note buyers who will check your buyers credit and give you a quote without charging you. Higher interest rates and shorter loan periods will get you more money too. You know you won’t get the full face value for your note, but will there be other fees you have to pay too? How do you know if the buyer is reputable? What is a normal discount on a note? Here are some guidelines to follow: 1.
Real Estate Notes 4. This is something to consider before you sell the house, if you think you might sell the note in the future. Unscrupulous buyers can quote one price initially, and then lower it later, using the excuse of the property buyer’s bad credit score. Contact several note buyers for quotes. Rich Dad Real Estate Seminar Some note buyers will buy new or “unseasoned” notes, but if you can wait until six payments have been made, you’re likely to get a much better price. They should respond within a day or two. You can sell second mortgage notes, and other second-place real estate notes as well. The note buyer should check the credit of your property buyer upfront. Buy Real Estate Notes Those are notes that have had payments made on them for a while..