What to Look For in a Mortgage Note Buyer

Abby Shemesh
September 5, 2016

Mortgage notes are similar to stocks; depending on the market and your goals, they can be both great assets to retain and great assets to sell. If you’re planning on selling a private mortgage note, what should you look for in a mortgage note buyer? This is the question we answer here, listing four key characteristics to look for in mortgage note buyers.

1. Offers the Specialization You Need

It’s like hiring an attorney or choosing a doctor; you need to select an investor who specializes in your area of need. If you’re interested in selling a private mortgage note, focus on reaching out to investors that have a record of making competitive offers for private mortgage notes, as  opposed to similar debt instruments sold on the secondary loan market.

2. Cares About Your Financial Goals

A private mortgage note buyer that offers great service does more than consider its own financial interests. It also respects the financial goals of clients, and — for that matter — realizes that helping clients reach the goals is good for business.

You want to know upfront whether an investor offers great service. Examining the investor’s record at the Better Business Bureau (BBB) is one of the easiest ways to find out. In addition to considering the letter grade, look at the record to see if the investor has unresolved customer complaints. If so, take it as a warning: The next unresolved complaint could be yours.

3. Offers Partial Purchase Options

Should you opt for selling a private mortgage note for a lump sum, or should you retain it to receive monthly income? It can be a tough decision. If you’re asking this question, consider the advantage of offering your note to an investor that offers partial buyouts.

There are two types of partial note sales: straight partial and split partial. In a straight partial sale, the investor purchases a time block of mortgage payments (the next two years, for example). The seller receives a lump sum and starts receiving mortgage payments again after the time block expires. In a split partial deal, the investor also buys a time block of payments but only purchases a portion of each payment (for example, $900 out of $1,200).

Note owners who need a significant sum of money should consider these options, even if they’re continuing to receive monthly income from their notes.

Are You Interested in Selling a Private Mortgage Note?

If so, Amerinote Xchange would like to hear from you. We proudly make highly competitive offers for mortgage notes, mortgage loan portfolios, business notes, and other debt instruments that are purchased and traded on the secondary loan market.

We know you need a buyer you can trust. That’s why we fully explain what determines the value of your note, how much it may be worth in the near future, and the advantages of selling real estate notes now versus potential benefits of selling later.

To schedule a free consultation, call us today at (800) 698-3650, or use our contact form. We look forward to helping you make the best decision when selling a private mortgage note!