We Buy Seller Carried Real Estate Trust Deed Notes

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'Private Note Holders Wanted!'

Why do many note holders sell after their note after it was created?

The reasons are varied but normally relate to the desire of the seller to collect upfront cash and remove the risk of an uncertain payment stream over time.

Many note holders didn’t really want to carry the financing in the first place and just agreed as a way to sell their property in a timely fashion or for better price.

Besides getting upfront cash for the Note, why else would one consider selling their note? Below are some factors the seller would normally consider:

	Rising Interest Rates. We remain at historically low interest rates. As interest rates rise, as they inevitably will over the next few years, the value of the note will decrease because new notes will be written at higher rates, making mature (existing) notes less valuable. Furthermore, what impact will rising rates have on the value of the property that is secured by the note?
	The Time value of Money. Money collected in the future will buy less in the future than it will buy today because of inflation. A hundred dollars today is worth a lot more than a hundred dollars ten years from now.
	Irregular Payments. Many note holders fear irregular payments and worry about full default.
	Cash Now! Many sellers are simply interested in freeing up some extra cash for another property, a needed vacation, their children’s education, care for a loved one etc.
	Foreclosure Issues. The holder is unprepared or unwilling to foreclose on the property if necessary because they are uncertain on how to proceed, or they really do not want to take back the property. In many cases the note payor is a family member or a friend that they helped get established by financing all or part of the purchase of their first home and are not prepared to risk befriending that relationship by proceeding with a foreclosure.