For many property owners, finding the right company to buy your mortgage notes can be a nerve-wracking experience. In most cases, you don’t get to meet your note buyer one-on-one. Note buyers live in distant cities, so you’ll only communicate via phone or e-mail. So how can you find an experienced and reliable note buyer who will give you the best return on your investment?
To find a reputable note buyer, follow these 5 tips from Amerinote Xchange:
- Before selling your mortgage note, it’s important to research several note buying companies to find the right one. Visit their website. If they don’t have a website, chances are they aren’t reputable. Also, many offer free consultations so you can call and inquire about the company and the note buying process. Only choose a company that is and has been in business for over five years.
- Next, it’s important to note if you are working with a note broker, instead of a direct note buyer. The major difference is that a direct note buyer (like Amerinote Xchange) does not charge commissions when selling real estate notes, whereas most note brokering firms most certainly do. When searching for a reputable note broker, you want to be sure that the note broker business is a licensed real estate broker in its state of operation. In some states, note brokers are not required to obtain a special license. However, having a license shows that the company is an experienced and committed note brokering firm. Once you find out if a note broker has a license, check with the state’s Bureau of Real Estate to see if it has received any disciplinary action.
- Find out if the mortgage note buyer has an A rating (at the very least) and no unresolved complaints. While it is not legally required, many leading note-buying companies are accredited by the Better Business Bureau. If the company is accredited with a strong rating and no complaints, you can feel confident that it is a reliable business.
- Type the company’s name into a search engine to see if anything negative pops up. You’ll most likely find it here if the company has been accused of scams or bad behavior.
- Lastly, all note holders must follow their gut feeling. Does the company seem trustworthy? Has it completely answered all of your questions? Does it seem to be looking out for your best interest? If you have answered yes to all of these questions, chances are you have found a dependable note buyer. If you don’t feel comfortable with the note buyer, then move on to another.