How It Works

Sale of a Seller Carry Back Note

A secured real estate note can be sold at any time from the day it was created until the day of the last payment. What is actually being sold is the stream of monthly payments. A note holder can sell all the payments (a full sale) or part of the payments (a-partial sale).

There are so many options available to the note holder for full and partial sales; they are too numerous to mention. If the note holder is working with a knowledgeable note buyer, the note buyer can structure options designed specifically for the cash needs of the note holder.

It is important to know that all of these sales are equivalent. In other words, a note buyer would be equally happy with any of these purchases from a note holder.

Example Of A $90,000 Note On Which You Are Receiving Payments

Some Of The Options Available To The Note Holder

1. DO NOTHING: Continue receiving the remaining 156 monthly payments of $967.14.
2. FULL SALE: Sell the entire note now.
   

   NOTE HOLDER GETS:

   $66,229.43

   CASH NOW

3. PARTIAL SALE-FRONT END PAYMENTS: Sell the next 5 years of payments (60 payments.) Then receive the last 96 payments.
   

   NOTE HOLDER GETS:

   $40,653.34 $63,736.86 $104,390.20

   CASH NOW Loan Balance in 5 Years Total Cash to Note Holder

4. FULL SALE – SPLIT FUNDING. Sell one half of the note (the next 78 payments) now and the other half of the note (the remaining 78 payments) after the first 78 payments are paid.
   

   NOTE HOLDER GETS:

   $48,010.47 $48,010.47 $96,020.94

   CASH NOW Cash in 78 months Total Cash to Note Holder

5. PARTIAL SALE – ONE HALF OF EACH MONTHLY PAYMENT. Sell one half of each monthly payment and continue to receive the other half.
   

   NOTE HOLDER GETS:

   $33,114.72 $483.57

   CASH NOW Per Month for 156 Months

Many other options are available. Options can be designed specifically for your cash needs. To find out what your note is worth click here.