Promissory Contract

So you are thinking of selling your promissory note? Great! But not so fast. There are certain steps to keep in mind if you're not overwhelmed when you begin. The following is a list of tasks you can expect to be confronted with the collection before the note. It applies to real estate notes, business notes, mobile home notes, land notes and other promissory note is secured by property or assets.

1) Find copies of all documents used to complete the sale when it occurred. In general, this includes (but is not limited to) a copy of the mortgage or deed of trust, a copy of the promissory note, the closing / settlement statement, and the payer's name and SS # for confirm their credit score. The investor will give you a list of documents they need.

The aim of providing this information to the investor is simply to prove that all the preliminary information, they based their offer out of everything is correct. Even if I told you how to clean a fancy car that you want to buy, you'll probably see it first. The same idea applies here. Note investors are not buying blind.

) Provide information quickly. I saw two offers drag on for nearly a year simply because the note holder does not show the buyer the information required for due diligence. Do not let this happen. If you want to be paid for your pay, keep in mind that time is precious.

Some ticket holders trying to get proof of funds from investors before providing any documentation. This is unethical and investors have no reason to respond to these requests, and the example above regarding the car is well suited to this question. Most hesitant note holder can expect to receive without providing documents is a letter of intent (LOI) with many conditions included for the protection of the investor.

Save everyone time and take into account when you plan to sell your promissory note.

3) Expect a discount. Ticket Holders many believe in a mythical investor notes that will pay the entire balance due on their notes for purchase. Although many buyers and brokers, including myself, work until they sweat to get aggressive and generous offers, they are always and will always be discounted in the balance this note.

Note investors want to invest their money and expect a return. If this is unpleasant, unfair or scam your eyes, your best bet is to keep the agreement between you and the payer of the way it is until you have received all final payment. Your only chance to reduce the shot you take is to properly structure the note to increase its attractiveness. See the article "The main factors structuring promissory notes" for advice on this.

4) Make sure that the preliminary information you provide is as accurate as possible. If, for example, you provide a note which purports to be a first position mortgage note is $ 200K with a payer whose FICO is 780, then that you send the documents and they say it's a second position mortgage note is $ 20K with a payer whose FICO is 580, then the preliminary offer will obviously change.

Some note buyers and brokers can not tell their customers that the disclosure of preliminary results in the preliminary target, subject to due diligence. Be prepared to check everything you say is true about your grade or anticipate a further reduction.

5) Check the job title of the person with whom you work, and their level of experience in the industry cash flows. Some dealers posing as buyers, when purchasing your note around the Internet. Some brokers exaggerate their experience when they can not even translate the terms of your note back to you.

A simple wa.