What's a note? A note is a promise to pay. It's a document that gives one the right to receive payments. It's usually secured by real esatate, or some other form of guarantee.


How much will you pay me for my note? There are many factors that come into play when determining how much we'll pay for a note. Payor's credit history, loan to value ratio, type of property, and the type of security that is offered are all factors that come into play when determining how much a note is worth. Before we can purchase a note, it needs to be evaluated. If the note is marketable, we will usually make an offer of purchase within 24 to 48 hours after receiving all of the needed information.


What is a note discount? This is a very common question. A note discount is the difference between what an investor is willing to pay for the note, and what is still owed on it. We will find the best offer we can for you picking from a pool of investors we work with all the time. They will account for the time value of money, and weigh all the factors that make up their purchase parameters before determining how much they will pay for or "discount" the note. ,

What is the "face rate" on a note? The face rate is simply the interest rate being charged on the note. The higher the interest rate, the more valuable the note is to an investor who might purchase it.


What is a partial note purchase? A partial is the selling of some the remaining payments left on a note. In contrast, a full purchase is the purchase of all of the payments remaining on a note. Note sellers often sell only a few payments on a note to get the cash they need now, and then they get the note back later and start collecting payments again.


What is owner financing? When a seller agrees to allow a buyer to make payments over time for the purchase of property or merchandise, it's known as owner financing, or seller financing. Seller financing can, and often does open up a market that wouldn't exist otherwise, thereby improving the chances of a sale. If used correctly, it can be a tool to sell a property that just won't sell with price reduction alone.

What is meant by the term time value of money?