How much of a discount do I have to take when I sell my note?

There is always a discount to the seller when a note is sold. However, since interest rates are the lowest they have been in many years, the discounts are also very low. Current discounts are typically from 5% - 10%. There are several factors that determine the value of a note: sales price, down payment, interest rate, pay history, credit of buyer, type of property, and other “intangibles”. If you’d like, we can give you an exact quote of the value of your note. 

How long does it typically take for me to get my money?

Since we have over 35 years of experience in evaluating notes, we do not have a loan committee and our funds are readily available, WE CAN CLOSE FAST, typically within two weeks. 

Can I sell part of my note to raise some money now, without discounting the entire note?

Yes! We can purchase part of a note. For instance, if you have a note with $100,000 balance. but only need $25,000 cash, let’s assume that the payments are $800 per month at 7% interest. You may only have to sell three years of payments (36) to obtain the $25,000 needed. After we have received those payments, the note is assigned back to you, and the balance remaining is over $91,000! 

Why would it make sense to give up the interest that I am already receiving on my note?

It might not. But if you were to use the cash to pay off credit card debt (higher interest), your home mortgage (for peace of mind), or if you are not living on the monthly payments and they just “evaporate” into your monthly living, you could invest the cash from the sale of your note into an annuity or some other type of “term” investment at a lower rate of return than your note rate and still come out ahead. Because of compounding interest, you would have a larger lump sum of cash at the maturity of the investment. For example, if you sold the above note for $90,000 and then invested the cash at 6% interest in a term investment for the same term as the note (270 months, or 22 ½ years), you would have over $346,000; but from the note, you would receive 270 payments of $800, or $216,000. This is because all of your money is constantly earning 6% interest, whereas, when you are receiving a portion of your investment every month with a note, the portion that you receive is no longer “working” for you.