The Ultimate Note Sellers Guide
How Partials Work
Tips on Creating a Deed of Trust Note
Sell My Note
Learn more about valuing and selling my note.
Alan Noblitt is the President of Seascape Capital, LLC, and works as both a real estate note buyer and a business note broker. Alan has an MBA from Arizona State University, a B.S. from the University of Wyoming, and is licensed as a California Real Estate Note Buyer.
Previously, he worked for Hewlett Packard for 18 years in finance and marketing positions, with five of those years spent in France. He launched Seascape Capital in 2002, and incorporated the business in 2003.
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Why Choose Us
Seascape Capital is a top real estate note buyer that purchases notes across the fifty U.S. states. Also known as private mortgage buyers, promissory note buyers, or mortgage purchasers, a real estate note buyer helps individuals who are wanting to sell their notes after an owner financed transaction.
Elements Of A Note
The mortgage note – or simply the note – can be used on any number of property types – residential, commercial, mobile homes, or land. For any of them, the note nearly always includes these parts:
- Amount owed
- Interest rate
- Term of note in months or years
- Payment amount
- Due date of first payment
- What happens in case of default
Why Create A Note
When it comes to real estate, a general handshake agreement is usually not advised, nor is it legally enforceable. The note is created to avoid any confusion or ambiguity, and is generally written by an attorney, title company, or other expert. The same expert who creates the mortgage note would also create related documents like the mortgage, closing statement, and warranty deed.
Other Types Of Notes
In many states, instead of a mortgage note, the parties can use a deed of trust note or contract for deed. Although we won’t go into the details of the various differences here, they are similar in most respects to a mortgage note.
Obligations Of The Payer
The person who bought the property must follow the terms of the note exactly. This means that he or she must pay the agreed upon amount on certain dates. Failure to do so puts the payer in default, and allows the note holder the ability to pursue legal remedies up to and including foreclosure. Thus, it is imperative that the payer budget for payments over the long term, and immediately alert the mortgage note holder of any problems.
Selling A Note
At some point, many note holders decide to cash out of their note and sell them to a note buyer. There could be many reasons to sell, including retirement, having other investment opportunities, or not wanting to keep messing with the risk of default or the payer not keeping up with their insurance and taxes. Perhaps some of the same ideas spring to mind for you.
While other articles on this site go into detail about selling your note, the most important step is finding the best note buyer. Besides you having a good feeling about the person at the other end of the phone, be sure that they have an A+ rating from the Better Business Bureau, are licensed as a real estate broker in at least one state, and have no negative online reviews.
An excellent note buyer will give you a fair price for your note. Factors that enter into the note buyer’s calculation of your price include the type of property, payer credit, the amount of down payment, and the payment history. A top note buyer like Seascape will explain the pricing to you, walk you through the process, and keep you continually updated.
The note buyer will also explain that there are other ways to sell your note. Instead of selling your entire note, you can sell only some of the payments. This is called a “partial”, and there are advantages and disadvantages to going down that path that are detailed in another article.
Seascape Capital has been in business since 2002, and is known throughout the industry as an honorable, ethical, competent, and successful company. Please call us for any of your note needs at 800-634-4697.
Should I Keep or Sell My
As a person who owns a mortgage note, you are already familiar with the benefits of having a note. There are advantages to receiving regular (and hopefully, on time) payments coming in on at regular intervals and at a good interest rate. If you have the time to manage the mortgage note and have plenty of cash in reserves, you may like having that note. However, there are also numerous risks associated with carrying a note. What happens if the buyer loses their job or goes through a divorce and stops making payments?
Is the buyer staying current on property taxes and insurance, as well as maintaining the property? Will the buyer still be able to make the payments in 5-10 years? If the buyer defaults, are you prepared to spend thousands of dollars and wait many months going through the foreclosure process? If you are considering selling your note, call a nationwide direct mortgage note buyer like Seascape Capital to understand the best options. You may decide to sell just some of the payments rather than the full note, but get informed first so that you can make the best decision for yourself.
What is a Partial?
A partial is simply selling only a certain number of payments on your mortgage note or trust deed note to a note buyer. For example, let’s say that you own a note with a balance of $100,000 and that has a term of 30 years. However, you only need $25,000 now to pay off some debts or to make other investments. In that case, the company that is buying your note may offer you $25,000 to buy, say, the next five years of payments, with you receiving all of the payments after that.
Some of the advantages to selling a note this way are that you usually make more money overall, have the flexibility to sell more payments in the future, and may have tax advantages by deferring capital gains. A top-notch mortgage note buyer like Seascape Capital can help you in just selling as much of the note as you want and in comparing the various options.