Sale of real estate notes raise cash quickly. A real estate note is the loan document created to finance sale of the owner’s house or investment property. It could be a mortgage note or a land contract or contract for sale whereby payments are made
A risk involved is that while a seller won’t get the full face value for his note there could be other fees needed to be paid. Questions arise such as whether there is a normal discount on a note or whether the buyer is trustworthy. Some guidelines for these are:
1. There should be no upfront fees. Certainly there will be some buyers who will check on the buyer’s credit and give a note without charging any fee...[more Real Estate Note]
