When selling your private mortgage note, you can do so through an investor or directly with a buyer. No matter which way you choose, it’s important to know the ins and outs of selling your private mortgage note. In addition to looking at more than one bid to make sure you receive fair market value, here are three other things to keep in mind when selling your prized private mortgage note.
Your Credit Score Won’t Matter
It’s a common misconception that your personal credit score matters when selling a private mortgage note; it doesn’t. The strength of the private mortgage note lies in its terms, the buyer’s credit score, and the overall value of the property.
Your Private Mortgage Note Won’t Sell at 100-Percent Value
While cashing in a private mortgage note at 100 cents on the dollar sounds like a winning scenario, it isn’t a realistic one. That’s because whoever buyers your private mortgage note will absorb some expenses while acquiring it, including the costs associated with title search, appraisal, and closing. To maximize your sale, remember to browse around for multiple private mortgage note quotes.
Your Proof of Payments Incentivize Your Private Mortgage Note
Whether an investor or a buyer purchases a private mortgage note from you, neither will want to run into any issues in doing so. If you’re able to provide proof of payments, you incentivize your private mortgage note by assuring the buyer there aren’t any outstanding issues with it. This adds great value to your note.