Real Estate Notes

Convert your Monthly Cash Flow into a lump sum of cash that you can use today!

Are you feeling dissatisfied, worried or stuck in today’s economy? Is the monthly income payment you are receiving from your private Real Estate Note, Mortgage Note, Trust Deed, Promissory Note or Cash Flow Note smaller than you thought? Is the monthly cash you are receiving really what you wanted when you sold your property? Is it really what want and need today? If you don’t want to wait years and years for the future money owed to you then…

…Get all the cash you want right now by Selling your Real Estate Note.
If you’d like immediate cash and are thinking of Selling your Real Estate Note for Top Dollar Premium Cash then you truly need KE Consulting Co. to help you.

Over the past few years of low interest rates in real estate, there was not a lot of news about owner financing. Banks and credit unions have scrambled to find more customers by lowering their lending criteria and competing on rates, so that nearly anyone could find a loan for their house or business somewhere. That is still somewhat the case today, though it will become less so as interest rates continue to rise and foreclosures climb.

Even in these times, there are still a lot of sellers offering owner financing on properties. The reasons for offering owner financing vary, but include:

  • Seller wanting to defer taxes on gains.
  • Saving the high bank closing costs and fees.
  • Creating more flexible terms and payment schedules.
  • Weak buyer credit.
  • Sales between family members, or divorce agreements.

Owner financing notes can vary, but always include an agreed upon term, interest rate, payment amount, and payment date on which the buyer of the property must pay the seller. The conditions are formally written in a note, sometimes also called a promissory note or installment note.

Usually, the seller would have preferred to have received all of the cash upfront. Even if that wasn’t the case at the beginning, circumstances may have changed or new investment opportunities have appeared that cause the seller to need cash quickly.

There are investors, both institutions and private, who will buy these notes. They will generally discount the note (pay the seller an amount below the note’s current balance) to offset their risk and meet certain yield requirements. The amount of discount varies across notes, but the two biggest factors in determining the discount (besides the type of property) are the amount of equity in the property (cash down payment plus principal payments received) and the credit of the buyer. The more equity and the better the buyer credit, the more that the note is worth.