18 10, 2018

Why Are Real Estate Notes Bought and Sold?


Why are real estate notes bought and sold? Noteholders may choose to sell the note to a real estate investor if they have difficulty receiving regular, timely payments on the note or need cash. They sell the note at a discount because it’s based on future payments using today’s dollars. The sale of the note provides instant cash. And it removes a noteholder from any further responsibility for collecting payments. Investors who purchase promissory notes because they offer a versatile, collateral-backed real estate investment, not affected by stock market changes. Since notes sell at a discount, investors earn returns from the [...]

Why Are Real Estate Notes Bought and Sold?2020-09-25T14:07:08-04:00
8 06, 2018

How to Determine the Value of Mortgage Notes


How Much is Your Mortgage Note Actually Worth? If you provided seller financing, you may wonder about selling a note to free up cash for other needs. One question is: how much is your note actually worth and how do buyer determine value of mortgage notes? Don’t assume the value is equal to the principal owed on the note. In fact, a note’s value depends on a number of different factors. Is Your Note Sellable? Investors invest money in assets to earn an acceptable return. Notes are the same. That’s why most notes can be sold. But if investors can’t make [...]

How to Determine the Value of Mortgage Notes2020-06-16T11:02:55-04:00
25 05, 2018

Rising Interest Rates and Selling Your Mortgage Note


Do Rising Interest Rates Make Selling Your Note a Better Way to Secure the Cash You Need? During the financial crisis of 2008, the Federal Reserve Bank (the Fed) lowered the federal funds rate. The prime rate – the interest rate banks use to set lending rates for consumers – fell to encourage banks to lend money and spark growth. As the economy improved after 2008, the Fed gradually increased the federal funds rate to as much as 2.4%. (As of April 2020, the effective Federal funds rate is 0.05%.) How Do Rising Rates Affect the Economy? If the Fed raises [...]

Rising Interest Rates and Selling Your Mortgage Note2020-09-29T16:49:17-04:00
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