Why Would I Want to Sell My Real Estate Note?
When you convert part or all of your real estate note into cash, you gain several advantages in addition to immediate cash:
1) You don’t have to worry about the payments you receive each month slipping away on life’s little expenses.
2) You receive a substantial sum of cash right now enough to accomplish some major goals.
3) You don’t have to worry about collecting monthly payments or servicing your note; we’ll handle it.
4) You don’t have to worry about whether the taxes and insurance premiums are being paid each year to protect your investment; we’ll handle it.
5) You don’t have to worry about whether your purchaser will continue to make their payments.
How Can I Find Out How Much My Real Estate Note is Worth?
One brief consultation with an RED Enterprises Group, LLC Analyst will answer all your questions, enable us to present clearly several options in writing, and help you decide for yourself whether turning your real estate note into immediate cash or keeping it makes the most sense for you. The choice is yours.
How Soon Do I Get My Money?
Once you accept our cash offer and all papers are in order, you can receive payment in 14-21 business days. We believe in fast, efficient service!
How Much Cash Can I Get?
Each real estate note is carefully reviewed to determine the maximum value of the note. RED Enterprises has many options that will meet your individual needs.
Are There Any Additional Benefits To Me?
Yes. When you consider the impact inflation can have on the value of your note over it’s life, cash in hand today can be expected to be worth a lot more now than years down the road.
If I Convert My Real Estate Note To Cash, Will It Affect The Person(s) Paying Me?
No. All terms and conditions outlined in the original note remain the same. Your purchasers simply send their payments to First National.
What Types Of Property Do You Purchase?
We purchase real estate notes on virtually all types of property: single-family homes, multi-family homes, commercial, recreational, vacant land, and mobile homes with land attached.
Why is there a Discount?
You may be surprised (and even a little disappointed) to discover that investors purchase notes at a discount.
Is that fair?
It most certainly is! But you may need some convincing, and that’s okay.
If you are reading this, you may have sold a home or other property and now hold a real estate note payable over many years.
Consider for a moment that, instead of carrying back a note, you had sold your property for cash. No discount, correct?
Even with the sale of a perfect house to a perfect buyer with great credit, you would still need to pay a Realtor 6% and other closing costs.
The point is that even in the case of a cash sale, you would put only about 92% of the sales price in your pocket. That’s an 8% discount!
It shouldn’t be too surprising, then, that there’s usually an even bigger discount for the sale of most privately held notes. There are many reasons for this.
Usually, property sells on a real estate note for a reason: the property is tough to sell, the purchaser has rougher credit, or the down payment is 10% or less.
But this does not mean your note has no value.
As you can imagine, every note is different. On average, a typical real estate note is worth about 83% of the balance due. Some great notes (from our perspective) sell for discounts that are only about 5%, and other notes, unfortunately, are considered too risky to purchase even at a steep discount.
If you have a good use for the money or if you’d just like to simplify your life, a reasonable discount is worth it. Stores discount merchandise all the time. It doesn’t mean you’re desperate for anything or that you made a mistake when you sold your property on a note. It simply means that now you might value the safety, simplicity and flexibility of cash-in-hand over monthly payments.