FAQ
Have questions? Explore our frequently asked questions below for quick insights into our services and processes.
What is mortgage note brokerage?
It’s the process of facilitating the purchase and sale of mortgage notes, ensuring clients get value, transparency, and efficiency throughout the transaction
How do you ensure the best market value?
Our team constantly analyzes market trends and conducts comprehensive due diligence, ensuring that clients receive optimal value for their investments
Who are your typical clients?
We serve a range of clients including Individual Note Holders, Real-Estate Investors, Financial Institutions, Private Equity Firms, and more
How does note brokering work?
Note brokers act as intermediaries between note holders (lenders) and investors or buyers. They find, evaluate, and negotiate the purchase or sale of these real estate notes
What types of notes do note brokers deal with?
Note brokers typically work with various types of real estate notes, including mortgage notes, land contracts, trust deeds, and seller-financed notes
Is a license required to be a note broker?
Licensing requirements for note brokering can vary by jurisdiction. Some areas may require brokers to have a real estate license, while others do not. It’s essential to research and comply with local regulations
How do note brokers get paid?
Note brokers typically earn a commission or fee for facilitating the sale of a note. This fee can be a percentage of the note’s face value or a flat fee negotiated with the parties involved
Why would I want to sell my note?
There are several reasons to sell a note, including obtaining a lump sum of cash, reducing risk, diversifying investments, or getting out of the lending business
How do I determine the value of my note?
The value of a note depends on factors such as the interest rate, remaining balance, payment history, and market conditions. A note buyer or broker can help assess its worth
Do I need to sell the entire note, or can I sell a portion of it?
You can sell either the entire note or a partial interest in it, depending on your financial needs and goals
How long does it take to sell a note?
The time frame can vary, but it typically takes several weeks to complete the sale of a note, from finding a buyer to finalizing the transaction
What happens to the payments I receive after selling the note?
Payments are redirected to the new note holder or servicer, depending on the terms of the sale agreement
Can I sell a note privately, or do I need to use a broker?
You can sell a note privately, but using a broker or working with a note buying company can help you reach a broader pool of potential buyers and streamline the process
What are the tax implications of selling a note?
Tax consequences can vary depending on your specific situation and the type of note you’re selling. It’s advisable to consult with a tax professional to understand your tax obligations
What kind of prices can I expect for my note?
That depends. Industry standards vary. With 30%+ equity and exellent borrower credit, the quote for the note can be 85-95% of the UPB.
Performing first position assets quote from 65-85% of the UPB.
And non-performing first or second position assets can quote anywhere between 15-65% of the UPB, depending on the relevant circumstances.