Owning
a promissory note, instead of demanding cash, sounded like a good
idea at the time you sold your real estate or business because you
would have a steady stream of monthly payments at a reasonable
interest rate. Right? But, how to sell a promissory note?
(A
promissory note is defined as 'A promise to pay a certain amount of
money on a periodic basis, defined by the terms and conditions
contained in the Note Document'. Usually, a Promissory Note is
constructed during a tangible property sale event where the property
seller 'takes back' a Note instead of Cash.)
Then,
you soon found out that one, the interest rate you charged is now too
low, two, the payer of the note doesn't always make the
payments on time so you have to call and demand the payments, three,
you have to pay taxes on the income, four, you figured out that the
value of your note diminishes everyday, and, five, you could put the
lump sum of the note money to better or now-needed use.
So,
you decided to sell your note. First you went to your bank and they
wouldn't buy it nor did they have any information about the
selling process.
Next, you asked your friends and one said 'Find a Note Broker'. So,
you searched on the Internet and
found a million web sites all purporting to be able to buy your note.
You talked with a few but didn't get any satisfaction nor any return
calls. Now the frustration sets in. Here is how to sell your note
1.
A reputable Note Broker will take the information about your note,
package the information and contact us and other Note Buyers he has
brokering agreements with. Some will broadcast your note to everyone
on the Net. Broadcasting will devalue your note to almost $0.00. So,
if you want to use a broker, ask him to provide you with the list of
buyers he is sending it to and does he have agreements in place with
all those buyers.
2.
A Note Investor/Buyer like us will request detailed information about
your note before we will provide you with a cash-purchase-quotation.
3.
You should receive numerous phone and email communications from your
selected Broker or Investor prior to providing a
cash-purchase-quotation. In our case, after 30 years in the business
and 50% referral customers, we must be doing something right, we
contact you within 1
day of note information submission and explain the process.
4.
You will receive, from us at least, a cash-purchase-quotation to buy
your note based on the information you provided.(If you contacted us
directly, you would have completed our online Note Information
Worksheet which asks all the required information to value your
note).
5.
Your Note cash-purchase-quotation is usually a Net-Cash-To-You
quotation. Sometimes it will be "$XXXXX.XX with your Appraisal
and Title.
Bottom
Line: Don't get caught up in the excitement of the deal while
understanding on how to sell a promissory note.
For More Details Click Here Dreamprotector.net
