Should I Sell My Mortgage Note?

 

You created a Mortgage Note and have been collecting monthly payments, but does that mean you are stuck with holding a loan for the full term? Life is constantly changing and sometimes it is no longer desirable or feasible to wait years to get your money. You as a private lender have options to sell your Note and receive a lump sum today!

Selling a note can convert those future payments into a lump-sum payment today providing the ability to meet immediate needs. This financial strategy offers:

• Immediate liquidity
• Transfers the risk of borrower default
• Eliminates the administrative hassle of loan servicing

Whether you need funds for a new investment opportunity, a large purchase, or simply want to rebalance your financial portfolio, selling a mortgage note can provide the flexibility to meet your financial goals.

Reasons to Sell

One of the most common reasons to sell a note is the ability to get immediate cash. While the monthly cashflow is good, there are great reasons to receive a lump sum payout such as:

1. Funding a new investment: Sales proceeds can be reinvested into other ventures that may have potential for a higher return.
2. Paying off debt or other large expenses: Pay down debt, pay for college, medical bills, home repairs.
3. Retirement or Estate planning: Financial strategies change with stages of life. You may want to reduce the sources of income to make it easier to manage during retirement. Also, simplifying finances for estate planning purposes can make transition to heirs easier.
4. Dreams and Wishes:Maybe it’s time to take that long awaited big vacation, get cosmetic/elective surgery, buy a vacation home, boat or dream car.
5. Tax strategy: Tax liabilities change as personal finances change thus the need to change strategies and adjust investment holdings.

Selling Options

When you are ready to sell, no matter the reason, there are two options you can follow:

1. Full Sale– Sell all the remaining payments. In this option, you will receive a one-time payout for the remaining unpaid balance.  With this option, you will pass all responsibility of the loan to the new Buyer, and you are free to move on with no baggage!
2. Partial Sale -Sell a portion of the remaining payments and then resume collecting when the partial period ends. Selling part of the note allows you to get some immediate cash while retaining the ability to get future payments. Getting money now can give you peace of mind for your immediate needs. The decision to sell part of the note could provide you flexibility and financial freedom. 

Summary

While you have enjoyed the monthly mailbox money from your borrower, it may be time to explore options to regain your investment today as compared to waiting for 30 years!   There is a large buyer market for your note and different options for you to sell your Note today! Having a resale market and different options to sell puts you in a great position to choose your future financial path!

Connect with Peak Notes Why not set up a meeting with a Peak Notes specialist to discuss how selling your Note can help you meet your financial goals! Meetings are brief, cost nothing and can give you more insight into how you can maximize your investment potential! If your property is located in Florida, please click on this link and set up a meeting with John.          Meeting with John     If your property is located outside of Florida, please click on this link and set up a meeting with Karen.      Meeting with Karen