Need Cash Now but Like Having Recurring Monthly Income

When you sell a Real Estate Mortgage Note you have two options available.
You can choose to sell the whole note, meaning all of the remaining payments that are due, or you can choose to sell what is called a Partial. By selling a Partial you can get instant cash now and after a period of time the note will revert back to you and the monthly payments you are receiving now will once again resume.

For instance let's say you sold a property 2 years ago that you carried the financing on. You created a note for $50,000 at 10% interest, fully amortized for 20 years.This created a monthly payment amount of $482.51. After having collected 24 payments totaling $11,580.24  you now have a remaining balance due of $48,952.59.

You could sell the whole note and receive lets say $38,000--this is just a guestimate your actual sale price may vary-- and your note would be out of your hands forever.

Or you could sell a Partial, let's say for the next two years worth of payments--you can sell any amount you wish from 1 year to 15 years since there are 18 years worth of payments remaining--but for this example you will sell just the next two years worth of payments. We already know that two years worth of payments total $11,580.24, since this is the same length of time you have already owned the note and have already collected.


You could sell this future $11,580.24 for lets say $8,000--again just a guestimate--then after the two years have passed when the 25th payment comes due, it would once again be sent to you instead of the buyer who had purchased your partial. This 25th payment along with the remaining 191 payments due scheduled to follow will all once again be yours.

At this point in time there would still be a remaining balance due on the note of $46,035.40. You collected $8,000 and your note only depreciated by $2,887.90. You got the cash you needed when you needed it, and now you have your incoming monthly payments returned to you. This is know as the best of both worlds.

Now that the note is once again back in your possession you can choose to do one of Three things with it.
1) Hold it and collect the remaining payments.
2) Sell the remainder off as a whole.
3) or Sell another Partial.

That's absolutely correct, you can choose to sell another partial segment of your remaining payments and have the remainder of the note returned to your possession at a later date. You can do this over and over again. Only until the payments run out of course, but as long as payments are due you can sell just a portion of them.
So if you are in need of some cash now but would like to retain possession of your note, selling a Partial just might be the answer you've been looking for.

We are always looking for answers to solve your financial needs. Partial Mortgage Notes sales are just one way we can help. Call today for more information on the options mortgage note ownership can provide to you. Or visit our website and sign up to receive free information on the mortgage note industry.