Real estate notes can be quite complicated. However, understanding the basics of promissory notes and how they work within real estate can help you better understand real estate notes. As such, let's explore the promissory note and how it works as a financial instrument.
If you're interested in selling a real estate note, you can do so right here with Red Enterprises. Whenever you're ready, you can request a free quote from us and we can get to work. As real estate notes are a type of promissory note, let's now look deeper into promissory notes so that you can gain a better understanding as to what they are and how they're used.
What are Promissory Notes?
A promissory note is a legal and financial instrument between an issuer and a payor designed to defer a portion of a purchase to be paid in installments, often monthly, and often with added interest. The payor promises to pay the determinate sum of money to the owner of the note, and in turn the note is backed by the asset itself. Promissory notes are common across a variety of industries, including real estate.
Promissory Notes in Real Estate
Promissory notes in real estate are simply called real estate notes, but also referred to as mortgage notes. These are a contract or an instrument where the note owner receives monthly payments with interest from a homeowner. Real estate notes can be bought and sold by a variety of institutions, including banks, real estate companies, or even individuals. In fact, real estate notes can be carried out with no third party transactions. That means individuals can create, buy, and sell real estate notes at their own discretion.
Those who buy real estate notes stand to benefit from steady payments with interest attached, making these notes a valuable investment. On the other hand, those with real estate notes can sell them to interested individuals or companies. The benefits from selling real estate notes are myriad. Selling your mortgage note can simply relieve you from the burden of owning said note. The money you receive from the note sale can also be used to pay off other debts or even make new investments.
Sell your Real Estate Note with Red Enterprise
If you're looking to sell a real estate note, contact Red Enterprise today! You can also call us at 307.213.9095.