How To Sell Your Cash Flows To a Note Buyer
21 Ways to Raise Cash or Restructure Business Debt to Increase Cash Flow
18. Sell Your Note
Topics Addressed:
Why presenting your note to sell to the right investor is critical to getting top dollar
What you can expect to happen when selling your cash flow note
How long will it take to sell your note
How you can sell part of note
A list of types of notes and cash flows you can sell
Business owners frequently take back a note when they sell their business. A number of property owners also take back a note on real estate they have sold. Both provide monthly cash flow secured by an asset they are familiar and comfortable with.
TIP: If you are selling your business and plan to carry-back a note (which often happens when outside financing is not possible and the buyer cannot pay in full cash), you can sell the note in a simulanteous closing with your sale.
Be sure to contact me for recommendations on the most attractive terms you should negotiate for a note buyer.
I have partnered with a resource that will assist you to sell your note for top dollar. His Rolodex is filled with private and institutional investors that give great prices on most notes. He knows which investor to present your note to. This is critical to getting top dollar because investors all have different types of note profiles which they like to purchase.
Because of the note broker’s knowledge and relationship with the investors, he can get you a great price for your cash flow notes. This service will save you time and money.
For example, there is an institutional investor that is beating everybody’s prices by 5-10% and my resource has an excellent working relationship with them.
His investors buy notes or instruments including:
1sts
2nds
Commercial
Business
Mortgage notes and contract for deeds
Sub-performing and non-performing
Small firsts behind large seconds
Judgments
Annuities
Mobile homes
Structured settlements
What you can expect to happen when selling your cash flow note
I will provide you with a brief worksheet to complete asking for details on your note to obtain a free quote for you.
Once you have accepted an offer price, you typically will receive a purchase agreement and checklist of the documents you need to provide in order to fund the transaction.
In the case of business and real estate notes, after your documents have been reviewed by the note buyers and they have completed their due diligence, the closing documents will be prepared and sent to you for your review and signature.
Once you return the documents to the closing agent, the documents will be recorded and the funds wired to your account or mailed to you. If documents are turned around in a timely manner, this can all happen in about 2 to 3 weeks.
Other types of cash flow notes will typically have longer funding time frames. For example, annuities and structured settlements take an average of 4 to 8 weeks.
Get More Information and Help:
If you are interested in obtaining a quote for your note, click on the Apply Button below to download a Lending Inquiry Form to get started.
Flexible Payment Options – Don’t Want To Sell the Whole Note? No Problem
Some buyers of notes can offer you the flexibility of making a partial purchase of your cash flow. Here’s an example.
Types of Notes and Cash Flows You Can Sell
18. Sell Your Note
Topics Addressed:
Why presenting your note to sell to the right investor is critical to getting top dollar What you can expect to happen when selling your cash flow note How long will it take to sell your note How you can sell part of note A list of types of notes and cash flows you can sell Business owners frequently take back a note when they sell their business. A number of property owners also take back a note on real estate they have sold. Both provide monthly cash flow secured by an asset they are familiar and comfortable with.
TIP: If you are selling your business and plan to carry-back a note (which often happens when outside financing is not possible and the buyer cannot pay in full cash), you can sell the note in a simulanteous closing with your sale.
Be sure to contact me for recommendations on the most attractive terms you should negotiate for a note buyer.
Use an Experienced and Reliable Broker with a "Gold Rolodex" for the Best Pricing
I have partnered with a resource that will assist you to sell your note for top dollar. His Rolodex is filled with private and institutional investors that give great prices on most notes. He knows which investor to present your note to. This is critical to getting top dollar because investors all have different types of note profiles which they like to purchase.
Because of the note broker’s knowledge and relationship with the investors, he can get you a great price for your cash flow notes. This service will save you time and money.
For example, there is an institutional investor that is beating everybody’s prices by 5-10% and my resource has an excellent working relationship with them.
His investors buy notes or instruments including:
1sts 2nds Commercial Business Mortgage notes and contract for deeds Sub-performing and non-performing Small firsts behind large seconds Judgments Annuities Mobile homes Structured settlements What you can expect to happen when selling your cash flow note
I will provide you with a brief worksheet to complete asking for details on your note to obtain a free quote for you.
Once you have accepted an offer price, you typically will receive a purchase agreement and checklist of the documents you need to provide in order to fund the transaction.
In the case of business and real estate notes, after your documents have been reviewed by the note buyers and they have completed their due diligence, the closing documents will be prepared and sent to you for your review and signature.
Once you return the documents to the closing agent, the documents will be recorded and the funds wired to your account or mailed to you. If documents are turned around in a timely manner, this can all happen in about 2 to 3 weeks.
Other types of cash flow notes will typically have longer funding time frames. For example, annuities and structured settlements take an average of 4 to 8 weeks.
Get More Information and Help:
If you are interested in obtaining a quote for your note, click on the Apply Button below to download a Lending Inquiry Form to get started.
Additional Information on Note Selling
Flexible Payment Options – Don’t Want To Sell the Whole Note? No Problem
Some buyers of notes can offer you the flexibility of making a partial purchase of your cash flow. Here’s an example.
| Sample Cash Flow: Current balance: $60,000 Interest rate: 9% Payment amount: $482.77 Remaining payments: 360 |
| Full Purchase The purchase of the receivable in its entirety. The note buyer purchases the right to receive all the remaining payments. In the example, all 360 payments. |
| Partial Purchase The purchase of installments from the front end of the contract with the seller retaining installments and/or balloon payment. In the example, the note buyer could purchase the next 180 payments, leaving the remaining 180 payments for the seller to collect or sell at a later date. |
| Reverse Partial Purchase The purchase of future installments allowing the seller to continue receiving immediate installments for a specified period of time. In the example, the seller retains the next six payments. The note buyer purchases the remaining 354 payments. |
| Split Disbursement Partial The purchase of a portion of each installment for a specified period of time and amount with the seller receiving the remainder of each installment. In the example, the note buyer purchases $200 of each payment. The remaining $282.77 is passed through to the seller. |
| Multiple Stage Payout The purchase of a receivable by a guaranteed staged payout of proceeds. Future staged payments paid regardless of note performance. In the example, the note buyer purchases the full $60,000 remaining balance. The seller receives a payment of $30,000 at the time of close and another $30,000 in 28 months. (Actual pay price and time between payments will vary based on specific structure of each individual transaction). |
| Simultaneous Purchase The purchase of an owner-financed receivable occuring immediately after the sale of real property. |
Types of Notes and Cash Flows You Can Sell
| Business Notes Professional services Manufacturing Shipping services Taverns Retail stores Construction Convenience store Restaurants Automotive Service companies Partnership buyout Corporate merger |
Real Estate Notes Owner-financed real estate secured by: Residential property: single family, 1-4 units, mobile homes with land, townhomes, condos Commercial property:motels, hotels, marinas, multi-unit retail, office buildings, apartment building and more Land: buildable lots, improved land, acreage, recreational land |
Non-Performing Notes Non-performing, delinquent and sub-performing real estate secured by: Promissory notes Land contracts Private mortgages Trust deeds Contracts for deed Installment contracts |
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| retirement |
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