some of the most frequently asked questions we receive from note holders about working with companies that buy mortgage notes


I didn’t even know I could sell my note. Where do I begin?

We understand.  That’s why we are here to help guide you through the process.  The first thing to do is educate yourself on how to sell your note. Next, we recommend you speak with one of our friendly note acquisition specialists who will answer all your questions and will even give you a free note evaluation if desired.

Why would you want to buy my note?

We have a large pool of real estate investors and our own capital that are looking for a secure investment.  If your note is investment-grade, and if the price makes sense for you, we would like to buy it so we can put our money to work.

I have a great note. Why would I sell it?

We find most note holders end up selling a note to free up cash for another opportunity, to cover unexpected bills, remodel their home or to simply get their money today instead of waiting up to 30 years for the rest.  In many cases, our sellers end up selling a partial so they can get some cash now without giving up all their future interest.

What’s involved in selling a note?

We obtain information from you about your note, the payor and property so that we can determine if it’s a note our investors would be willing to purchase.  If it is, we will provide you with a cash offer to buy all or part of the note.  If you decide to proceed, we coordinate with the realtor, servicing company, title and escrow company to close the note within 30-45 days.

How much is my note worth?

The value of your note is dictated by how your paperwork is structured, the payment performance history, your payor’s credit worthiness and the quality of the underlying property.  These four factors will combine to determine the note’s level of investment risk.  The lower the risk, more our investors are willing to pay for your note.

Is there any cost or obligation to get a valuation?

No! We are happy to give you a free note valuation in 15 minutes or less.  You can do that now by speaking with one of our note specialists at 800.909.1977.

Why is my note discounted?

Money today is worth more than money in the future. Most investors want to earn a 6-12% annual return over the life of a note and the longer the note, the deeper the discount will be in order to earn that return every year.  That’s why a 10 year note is worth more than a 30 year note. Quality is also a factor.  If the note is low risk, the investor will be willing to buy it at a lower yield and thus pay more cash for it today.  Notes with a high level of risk will merit a higher yield and will be discounted more.  To learn all the factors that determine a note’s value, download this ebook.

I’ve already talked with several other companies, what makes you different?

We are a note buyer vs. a broker (read more here...)  which means we are able to purchase your note directly from you with our own money.  You don't have to worry about paying extra broker fees that often come when there is a middleman involved.  When you work with us, there is no middleman.  If you or your property are in California, companies that buy notes are required to be licensed, many of which are not. We make it a point to be compliant with all state and federal laws and operate under a Real Estate Broker’s license.  Finally, the biggest difference is our people. Our team has bought over 3,500 notes since 1989 and are the nicest, most knowledgeable people you will meet in the industry (OK...we love our team and may be a little biased!).  What makes us different is we don’t try to be the cheapest note buyer but instead the one our clients trust the most. 

How long would it take to sell my note?

Normally it takes 30-45 days but it can go much faster if you have all your documentation in place and the note is a fit for our fund.

I received something in the mail from you.  How did you get my address?

Your deed of trust or mortgage was recorded on public recorded the day you sold your property.  We have access to a list of newly created promissory notes and your name was listed as a note holder.  Sending out resources in the mail is one of the ways we build a relationships and create life-long clients.


How do you make money?

We make money buy keeping a portion of the discount to pay for closing costs and make profit.  If we are buying the note with our own money then we make money by collecting payments and interest, just like you currently do.

How fast can you send me money?

Most notes take 30-45 days to close but we’ve closed in under a week before.  If you are in a rush, it’s best to talk with a note specialist ASAP to assess your situation.

What happens to my payor if I sell you my note?

In most cases, your payor won’t know you’ve sold the note until the transaction has been closed. We will request your permission if we do need to contact them during the note buying process. The only change for them once the note has been bought is where they send their payment to. Everything else stays the same.

Do you buy non-performing notes?

No. But we do have relationships with experienced non-performing note buyers that we can refer you to.  Please talk to one of our specialists to find out our recommendations

Do you buy land contracts?

Yes. We do buy land contracts. To get a free valuation on yours, click on this link to speak with one of our specialists.

I only need a small amount of cash. Can you help me?

We can often structure a small partial purchase that will enable you to get cash quick.

What exactly is a partial?

When you sell a partial, you keep part of your note.  The most common partial is where you sell a certain number of the upcoming payments.  Let’s say you you a 10 year note and decide to sell the next 5 years of payments and keep the back 5 years. The other method is a split payment partial where you sell a portion of the monthly payment and keep the rest. Partials are a great way to free up the exact amount of cash you need without selling the whole note at a big discount. To learn more about them, download our free Partial guide here.

What happens if I sell you a partial and the payor defaults?

When we buy a partial, we will set it up with a third party servicing company to monitor the payments and track how much of the note both you and the investor own.  If the note defaults and the property is resold, the investor is entitled to their remaining portion first and you get the rest. We’ve bought several thousand partials and the best thing is for you to speak with one of our note specialists who will share our partial agreement with you. You can even take it and have your attorney review it if desired.

What are the tax implications of selling my note?

We don’t offer tax advice and you’ll need to confirm with your CPA. We’ve found that in most cases, if a seller claimed the installment sale tax method back when they created the note and if they are selling it now for more than their basis, then they will need to pay tax on any capital gains.  Since a note could also be sold at a capital loss, it may actually reduce taxes owed come April 15th.  Make sure you chat with your tax professional to find out exactly how selling your note will impact your taxes.

What if I want to keep my note but have you manage it for me?

That isn’t a service we offer.  However, if we buy a partial from you, we will will take over the day-to-day management of the note which will take the burden off your shoulders.

I’m thinking of owner financing but don’t own a note yet. Can you help me structure it?

Yes. We will be happy to help you structure your new note to get the most value.  A good starting point is our 30 Factors ebook.  After you’ve read that, give us a call and we can chat through your deal together at 800.909.1977.