1. What is My Real Estate Note Worth?
TexasNoteCo.com
512.464.1214

2. Most Common phrase at TNC
• The most common phrase we get when customers dial
512.464.1214 is: " I have a real estate note I want to sell, what is it
worth? " If you are receiving monthly payments from sold property,
the quickest way for me to answer that question and provide you
with an accurate quote is to get a copy of the following documents:
• The Real Estate Note
• Deed of Trust
• Settlement Statement (if there is one)
• Story Behind the Payor (Husband and wife with kids, both work)
• Payor's SS# if you have them
•
• Our FAX # IS (512) 464-1214 or Email Me the docs
TexasNoteCo.com
512.464.1214

3. Other documents that you will want to
begin to put together
• 12 months of payment history (bank statement or cancelled checks)
• Lender's Title Policy
• Property Hazard Insurance
• Pictures of the property
• Property Tax Status
• Here is an ARTICE that discusses the paperwork involved.
While we are putting your quote together be thinking about how much
cash you need. Be open to a partial offer. The pool of buyers is larger
and the discount is not as great and after a certain period of time you
will get the note back with a remaining balance. Most partials offer
more for you money.
TexasNoteCo.com
512.464.1214

4. Note Discount
• The real estate note market is driven by investor’s requirement for Return on
Investment (ROI) and the amount of risk they are will to take with their money.
Most investor's require a ROI that is 10% and above, meaning in order to achieve
that rate they will purchase the note at a discount of the balance.
• The discount you receive depends on many different factors, but ultimately your
discount was established when you created the note. That is why it is so
important to have a note professional, like The Texas Note Company, to consult
with you when you create a note.
• What is the Standard Discount in the secondary note market? There is no Standard
Discount. Often note sellers will call The Texas Note Company and ask "What is the
standard discount when you sell a note like mine?" There are several different
variables that go into determining what the note is worth, type of property,
interest rate on note, payment history, financial ability of the payor, where the
property is located, amount equity in the note, and about 100 other variables.
Each note has its own flavor and fingerprint, and likewise each investor has his/her
own risk tolerance and flavor of notes.

5. Here are 10 Things to think about
when creating a note:
• Property sellers who use owner financing to sell their property often don't
understand the dynamics of the secondary note market, that goes for real estate
agents, attorneys, CPAs and other professionals as well. They will often create a
note that can be very difficult to sell and get the cash needed out of the
transaction, they did not create a note will the investor in mind.
Here are 10 Things to think about when creating a note:
• Down Payment
• Interest Rate
• The Term of The Note
• Credit Worthiness of the buyer
• Record Keeping
• Note Accounting
• Balloon Notes or Hold To Term Notes
• Clauses to include on the Promissory Note
• Items that need to be on the note
• Real Estate Professional Services