What is a Commercial Note?
A commercial note is a type of promissory note used to finance commercial real estate transactions. It represents a debt obligation owed by a borrower to the note holder, typically secured by a mortgage on the commercial property or other types of collateral. Commercial notes are often used in owner-financed transactions, where the seller of the property provides financing to the buyer. This type of financing arrangement allows the seller to receive regular payments from the buyer, while the buyer can acquire the property without needing to secure traditional financing.
Commercial Notes
Promissory Notes: Promissory notes are written promises to pay a specified amount of money at a certain time. A mortgage note is a specific type of promissory note secured by a mortgage on the property, often used in commercial real estate transactions.