subject: Some Tips On Selling An Income-producing Note [print this page] Do you need to free up some cash from an asset, like a mortgage, lottery payments or court awards? A quick way to turn an asset that pays out over time into cash in hand is to sell it. Did you know there are companies that will buy your income producing notes today and give you the usability of that money? You might have seen ads for these companies on television, in the newspaper, and now on the internet.
If you have a mortgage that you own and are receiving payments on, it might be a good idea to look into selling it. Some home sellers hold the mortgage on their house when they sell it. This allows for them to receive payments on the note and earn interest from it much as a bank or commercial lender does. Once they do this, they become investors and have an income producing asset. Sometimes, an investor needs to have a lump payout and not an income stream.
This can be a challenge to accomplish in the current market. Many firms that used to purchase mortgage notes have gone out of business or scaled back their note purchases because of lack of institutional funding and reduction of credit availability.
After contacting a note buyer, they will assess your asset's current value and give you an offer for a lump payment settlement. They will examine the face value of the note, the amount of payments being made to you and the length of time you have left to be paid. While you might think your note is worth its total face value, a buyer will know what it is worth in the marketplace. Taking into account the return on investment, the amount they offer might be different than the amount you feel it is worth.
As a seller, you have the option of talking to more than one potential buyer and comparing offers before you sell. You also have the option of making counteroffers if you feel the note is worth more than you are offered. If you are flexible and willing to negotiate, you can gain valuable experience and money by not taking the first offer an holding out for a higher amount. While the person you are speaking with might say the amount they offered is the only amount you will be offered, it likely is not. However, if, after considering other offers, it is, then close the deal and get you money in hand. Remember, your asset is going to be worth more to you, and a potential buyer, today than in a year.
