R Note Buyer FAQs

Questions

1. Why would I want to sell my note?
2. What do I have to do to get cash for my note?
3. Why should I sell my note to your company?
4. How much is my real estate note worth?
5. What’s the difference between a lump sum
   buyout and a partial sale?
6. How soon would I receive my money?
7. Why is there a discount when I sell my note?
8. Where does the closing take place?
9. Does selling my note affect my borrower?
10. I still have questions you haven’t answered!

Answers

1. Why would I want to sell my note?
   As with most things in life, our financial situations change.  When you decided to carry back your real estate note, the monthly payments looked like the best option.  That extra cash each month has helped you out.  Now, life has handed you a new set of circumstances and you feel that a larger up front payout offers you more opportunities.  If you want a lump sum payout for your mortgage note to meet your current needs fill out the Note Quote form or Contact Us to discuss your options.
2. What do I have to do to get cash for my note?
   Once you decide you would like to sell your real estate note, the procedure is simple, just complete the Note Quote form or Contact Us.  Then, we will work with you to see which buyout option best meets you needs and start the process to sell your note.   To LEARN MORE about the note selling process …
3. Why should I sell my note to your company?
   Our goal is to help you meet your cash flow needs easily and quickly.  We are honest, fair, and reliable.  We have a well organized and fully equipped office to handle all of the details of buying your real estate note … from getting you the best offer for your note to finalizing the closing of the sale and sending you your check!  Learn more about us...
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4. How much is my real estate note worth?
   That depends.  There are many factors that investors consider when deciding to make an offer on a note including how the note will fit in with their present portfolio.  The payout available for your note will depend primarily on these factors: 
   • Current, local market conditions; general economic outlook
   • Borrower’s payment and credit history, down payment and current equity
   • Current balance, interest rate, and terms of the note
   • Type, condition, and location of the property
5. What’s the difference between a lump sum buyout and a partial sale?
   To receive a lump sum payout, you would sell all of your interest in your note to a private Investor and receive a one time payment.  In this type of sale, you would no longer have to collect payments or worry about taxes and insurance payments being made on time.  A partial sale means that an Investor would purchase a certain number of immediate installments and you would retain the remaining installments and/or the balloon payment.  During the time the Investor receives the monthly payments, the Investor will service the loan – relieving you of collecting payments and monitoring insurance, taxes, etc.  Once the Investor has collected all of his/her payments, the note would revert back to you and you again would collect payments, and keep track of insurance, tax payments, etc. just as you are now.
6. How soon would I receive my money?
   Each transaction is unique, but it normally takes just 10 to 14 business days for you to receive payment once we receive all of the necessary documents from you.  Your help in providing complete and accurate information and expediting the process of getting copies to us will speed up the selling process.  At R Note Buyer, we make the note selling process as convenient and easy for you as possible.
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7. Why is there a discount when I sell my note?
   The value of your note depends on the current market for notes.  Each note is analyzed to determine the value of each future payment.  A $400.00 payment received today is worth more than a $400.00 payment to be received in five years.  Why?  Just look back a few years, do you remember going to the movies for about a $1.00 at ticket.  Now it’s about $10!  I shouldn’t even remind you about the price of gasoline … $ .25 - .35 a gallon to over $3.00 a gallon!  These examples show that, the same amount of money received in the future is worth less (or will buy less) than that money would today.  That’s what is meant when we say today’s dollars are worth more than dollars in the future.  This “time value of money” factor has to be taken into account in determining the current value of a real estate note.
8. Where does the closing take place?
   Generally, the sale of a mortgage note or real estate note can be handled by an overnight mail service.
9. Does selling my note affect my borrower?
   No.  All the terms and conditions of the original note will remain the same.  The only difference is that your borrower will begin making payments to the new note holder. 
10. I still have questions you haven’t answered!
    Since each note is unique, we probably haven’t answered all of your questions.  Please Contact Us, we’ll get the answers for your situation!
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