How To Value A Real Estate Note For IN Note Buyers And Sellers

Chris

If you have investing in a note or are thinking of investing in one, of your first thoughts will be to the value of the note – how much is it worth and how much can you buy or sell it for?

So you’re probably wondering how to understand the value of a real estate note in Indianapolis note buyers and sellers. 

There isn’t an easy answer but in this blog post you’ll learn some of the ways that a note can be valued, to make you better informed…

How To Value A Real Estate Note For Indianapolis

While note all of these factors will influence the value of every note, it’s important to see how a note can be valued. Probably the best strategy is to get in touch with us and we can help you understand how we value the notes we sell. Reach out to our team by clicking here or by calling (317) 526-4712.

  • You can value a note by the amount owed on the note, including both the principal and interest owning.
  • You can value a note by whether or not it’s a performing or non-performing note (although the definition of performing versus non-performing varies, in general you’ll find that a non-performing note is one where the person who is supposed to be paying the underlying mortgage is not paying it back. It’s important to note that non-performing notes still have a value!)
  • You can value a note by what position that note has in a line-up of mortgages on the property (such as a first position or a second position).
  • You can value a note by how much equity is in a note (notes may be equity, partial equity, or no equity).

As you can see, there are many factors that can go into how to value a real estate note for IN note buyers and sellers. In some ways, even the economy and the location of the property will play a factor in the value of the note, since houses in some areas might be priced lower than houses in other areas.

If you’re thinking about investing in notes, you also need to remember this: the value of a note is not just the specific price of how much the note costs to invest in, but rather how much value you’ll get out of the note once you’ve invested in it.

Example: Consider two investments – a portfolio of performing notes or, for the same price, a rental property. Different investors may have different opinions on which one is valued higher even if they could be bought for the same price… but the portfolio of performing notes will generally produce cash flow little or no work while the rental property may require a lot of work to maintain. (Note: this is a simplification for illustration purposes only; of course there are other factors at work here!)

If you want to learn more about notes, find out what kind of notes we have and how we value them, simply click here and enter your information on the next page to get in touch with us.

Selling A Note With Owner Financing In IN – Breaking It Down

Chris

If you are reading this post, maybe you’re looking to sell a note or maybe you’re looking for someone who is selling a note with owner financing in IN. Let’s break down the facts so you understand how it works and so you have all the info you need to move forward.

How Notes Work

A note is a real estate investment based on a mortgage. It works like this: a home buyer purchases a house and gets a mortgage. The lender provides the mortgage and anticipates the mortgage to be repaid. That mortgage note has value (the future potential repayments) so if the lender wants to access that value, they can sell that note to someone else. A note investor gives money to the lender and, in exchange, is investing the potential of earning those mortgage repayments still to come.

A note is a great way to diversify your investment portfolio out of strictly real estate while still enjoying the potential for cash flow.

What Is Owner Financing

Owner financing is when the owner of an investment carries a mortgage, allowing the buyer to buy from them instead of taking out a loan from a bank. Home sellers, for example, might sell their house through owner financing, accepting regular “mortgage” payments paid to them over time instead of to a bank.

Owner financing is helpful especially if you’re buying an investment and don’t have the capital or credit, or don’t want to spend all of your capital at once but would rather spread out the payments.

Selling A Note With Owner Financing In IN

If you’ve been searching for information about selling a note with owner financing, chances are you’re looking for any of the following possibilities, which may seem confusing.

  1. You have a note and you’re looking to sell it with owner financing, so that the note investor takes the note but pays you a regular income
  2. You are looking for a note investor or broker who is selling a note with owner financing in IN, so that you can pay them a regular amount for your note investment
  3. Or perhaps you have a note on a property that has seller financing and you’re looking to sell that note
  4. Or maybe you are looking to buy a note from a seller on a property with owner financing

As you can see, it’s potentially quite complicated and there are many shades of meaning to the simple phrase: “selling a note with owner financing in IN”.

Fortunately, we’re here to help sort it all out. Just pick up the phone and give us a call at (317) 526-4712. We can walk you through the fuller meanings of each one and help figure out which one you’re looking for.

If you’re thinking about investing in notes, let us help you figure out which notes are right for you and how to add notes to your portfolio.

Click here to enter your information and we’ll get in touch to talk about selling notes with owner financing

Working With A Real Estate Note Broker In IN And Indianapolis — 4 Tips To Get Started

Chris

If you’re thinking about diversifying your real estate investing portfolio, and perhaps looking beyond the traditional investing methods of single family property rehabbing or rentals, you might be looking at investing in real estate notes. If you are looking into notes further, read these 4 tips for working with a real estate note broker in IN and Indianapolis.

Tip #1. Find A Real Estate Note Broker With Experience

Real estate note investing has some similarities to real estate property investing but also some differences. And the real keys to success for brokers are a solid track record of helping others, and a deep list of great relationships. So talk to your real estate broker and see if they have both. What kind of experience do they have with note investing (and with helping others invest in notes) and what kind of relationships have the developed?

Tip #2. Find A Real Estate Note Broker With Testimonials

Although there are many ways to measure the success of a real estate note broker, one way is through how many testimonials and case studies they have. Do they have a lot of testimonials? Do they have a lot of case studies? (Sometimes they might have one or the other and that’s okay). Ultimately, you’re looking for someone who can show that they’ve helped others.

Tip #3. When Working With A Real Estate Note Broker In IN And Indianapolis, Ask About Note Availability

Great brokers have access to a lot of notes. They won’t necessarily own those notes themselves but they should access to them. (A broker’s inventory is likely not made of entirely of notes THEY own). You just want to make sure they have a lot of notes available. This gives you the assurance that they can pull the cream of the crop just for you, and that they can find the right notes based on your investing goals.

If you want to see our inventory, click here and enter your information.

Tip #4. Work With A Real Estate Note Broker Who Helps With Insight And Guidance

Real estate note brokers aren’t licensed investment representatives, so don’t expect that level of financial advice. However, good real estate note brokers should be able to provide you with some insight and general guidance, perhaps through blog posts or over the phone, that can help you understand how to invest in real estate notes.

A great place to start working with a real estate note broker in IN and Indianapolis is by reading this blog that you’re reading right now and seeing what information is available and how you can apply it in your investing. But then go deeper by getting in touch with the note broker to see if they have other ideas, insights, or even educational programs that can help you.

 

To learn more about notes, about how we can help you invest in notes, or to see our inventory of notes, just pick up the phone and call our team at (317) 526-4712 or click here and enter your information

Where Can I Buy Real Estate Notes In IN? — 3 Great Places To Find Them

Chris

If you want to invest in real estate without the pain and challenge and frustration of actually owning and caring for a real estate property asset then perhaps you’re thinking about investing in notes. If you are a note investor, or want to become one, maybe you’re asking the question, “where can I buy real estate notes in IN?”

Real Estate Frustrations

Maybe you’re sick of having to deal with the tenants and toilets and termites and trashed houses… maybe you don’t want to have to hound your tenants for overdue rent.

Owning real estate can be a lucrative step toward financial freedom but owning real estate property can be a problem. So it’s not a surprise that many investors are warming up to the possibility of investing with real estate notes.

Real Estate Notes

Investing in notes is an increasingly popular way to build your investing portfolio without the frustration of owning a property. You hold the paper, get the cash flow, but don’t have to worry anymore about whether the roof leaks! If you want to learn more about how to invest in notes, or if you’re asking, “where can I buy real estate notes in IN” want to see our inventory of real estate notes, give our office a call at (317) 526-4712.

Where Can I Buy Real Estate Notes In IN

There are several places you can potentially buy real estate notes. We’ll list them here, but be aware that this information is constantly evolving (and it may differ by state) so always check first to make sure this still applies.

Buy Notes Offline – one place to buy notes is offline, such as from banks and lenders (the mortgage originators) or from hedge funds (who used to buy a lot of notes). However, this can be a complex and time-consuming method to buy notes since it’s very “relationship-driven.” Fortunately, there are other ways to buy notes!

Buy Notes Online – another place to buy notes is online. You cans sometimes even buy notes on a site like Craigslist! However, the problem is that if you’re new to note investing, it might not be advisable to just buy notes wherever you happen to see them for sale. If you do choose to buy them online, make sure it’s a reputable site.

Buy Notes From A Broker – Perhaps the best way to buy notes is through a broker. A good note broker will have built a reputation that can give you the assurance of reliability. And, they’ll also have established relationships (such as with banks or hedge funds) to access an inventory of notes that you might be able to access on your own. It’s also easier to buy from a broker, too, because you can identify your investing goals and then the broker can tap into their network to find the best real estate note investments for you.

If you want to invest in notes, then click here and enter your info and we’ll get in touch to help you find the right notes for you.

Selling An Unsecured Promissory Note In IN?

Chris

If you’re in IN (especially Indianapolis), when it comes to unsecured promissory notes, there are two things to keep in mind: Its current value and its future value. 

If you are considering selling an unsecured promissory note in Indianapolis, the first thing you need to do is determine its current value or market value (that is: the value it will can be sold for “in the market”).

This is a pretty simple process really. All you need to do is contact a few professional companies that deal regularly with such investments as unsecured promissory notes, private mortgages, and real estate notes like Chris Buys Homes in Indianapolis.

Speak with a few investment counselors about what the current and potential future value of your unsecured promissory note is and what factors could affect its value – such as whether the interest rate is likely to go up, go  down, or stay the same.

Calculating the value of your note

When you contact a local IN investment professional, there are a number of things that will be considered about your unsecured promissory note.

One of the first things they’ll consider is the type of debt it is.

For example, unsecured debt can include things such as credit cards, student loans, medical bills, rent expenses, and any other type of debt that isn’t backed by assets like real estate or other property.

Without some type of asset “securing” the note, there can be more risk for the note holder… and more risk tends to decrease the overall value of the note to someone looking at purchasing your note payments.

While unsecured promissory notes may have a lower market value than secured notes (such as real estate notes and private mortgages), don’t worry… Indianapolis IN unsecured promissory notes still have value even if they aren’t backed by assets.

For example, they can be sold to a collection agency or to other investors for cash.

Selling an unsecured promissory note in Indianapolis

Before you sell your unsecured promissory note to just anyone, it’s a good idea to check with a number of different potential IN note buyers. Not all collection agencies and investors will give you the same deal. Some will pay you a higher percentage for your unsecured promissory note in Indianapolis than others.

You may even be able to bundle several unsecured promissory notes together to get the best possible deal. See if the company you are dealing with will pay you a higher rate for a larger bundle of unsecured debt.

It’s worthwhile to pay close attention to the terms given to you by the buyer of your unsecured promissory note. Before you sign on the dotted line, make sure you understand all of your obligations and exactly what you get in return for selling your unsecured promissory note. Here at Chris Buys Homes in Indianapolis we have a policy for full transparency and are glad to walk you through every aspect of the process, or method of deciding the current value of the note, and to answer any questions you have.

If you’d like to get a free offer on your note, contact Chris Buys Homes in Indianapolis today at (317) 526-4712.

Selling an unsecured promissory note in Indianapolis has never been easier!

If you are interested in learning more your options for selling your unsecured promissory note in Indianapolis, call us at (317) 526-4712 or click here to visit our website so you can learn more about your options.

 

Can I Sell A Private Mortgage In IN?

Chris

There has never been a better time to sell a IN mortgage note or promissory note, so if you’re wondering “Can I sell a private mortgage in Indianapolis IN?” the answer is: you absolutely can!

Interest rates are very attractive right now but that could change at any moment, and interest rates could start climbing any day now. (We at Chris Buys Homes in Indianapolis are always paying attention to interest rates and their impact on mortgage values).

The market value of a mortgage note is inversely related to the value of the general interest rate. In other words, if interest rates go down, the market value of a mortgage note goes up. But when interest rates goes up, the value of your mortgage note goes down – which is the situation we are currently facing right now.

Can I sell a private mortgage in Indianapolis?

Obviously you want to get the most you can for your mortgage note, promissory note, real estate note, or other similar real estate paper investment.

When it comes to maximizing your profit, timing is everything: Wait only a few days too long and the value of your IN real estate note could plummet because interest rates increased before you took action!

If you believe that interest rates are going to go up in the near future (and the Magic 8 Ball says, “All signs point to ‘Yes!’“) then you should consider selling all or part of your private mortgage or real estate note for cash.

Here’s the next step:

Determine the cash value of your private mortgage

The benefit of selling your private mortgage payments for cash is obvious.

Cash can be used to pay off debt, invest in other investments with a higher potential yield, or simply spend it on things you need, such as a home, cars, tuition payments, and so on.

Practically every mortgage note can be sold for cash – even those notes where the payments are not being made on a timely basis.

You can get a FREE “CASH OUT” QUOTE on your private mortgage by contacting Chris Buys Homes in Indianapolis today at (317) 526-4712 or by filling out the brief form on our website.

This makes selling your mortgage note for cash an especially attractive option if you are having collection problems or if you potentially are facing foreclosure on the property.

So, how can I sell a private mortgage in Indianapolis?

It’s never been easier. If you want to sell all or part of your private mortgage before interest rates go back up, now is an excellent time to do it.

If you are interested in learning more your options for selling all or part of your real estate note in Indianapolis, call us at (317) 526-4712 or click here to learn more about your options and to get a fast-fair Quote on your Indianapolis IN mortgage note payments.

 

I Want To Sell My Real Estate Note In Indianapolis IN

Chris

“I want to sell my real estate note in Indianapolis IN…Where do I start?”

Holding a real estate note, private mortgage note, private promissory note or other paper real estate asset in IN can sometimes be a challenging proposition: They don’t always offer the highest returns, you collect your cash over a period of time, and can come with the hassle of chasing payments.

And if you are trying to collect from a bad borrower or are facing the threat of foreclosure, you could actually collect less than you deserve.

Are you missing out on better opportunities because you’re holding real estate notes?

Although some people may choose the “wait and see.. and hope” method of holding real estate notes, you may prefer to get rid of your real estate note now so that you can reclaim the capital and use it for a different investment or use the money for something that came up that you need liquid cash for.

Getting rid of your IN real estate note is sometimes your best option because it lets you do more with your money.

For example, you can sell all or part of your private mortgage note or other asset and use the cash to reduce or eliminate your debt so that you no longer have to pay the debt service on it.

Or you can reinvest the cash in another type of investment that has a higher yield. This is a particularly good idea if other potential investment options are doing well, such as the stock market, local Indianapolis or IN real estate, or municipal bonds.

You can even sell off all or part of your real estate note in order to diversify your portfolio. It’s never a good idea to have all of your eggs in one basket.

Here’s the problem, and the solution, to your IN real estate notes

The risks including not collecting the money owed to you. Perhaps the bigger risk is the opportunity cost of missing out on investing your money in a better investment.

Holding on to your real estate note or a similar asset is not risk free. Property values are notoriously unstable, especially in today’s economy. So the asset you think has a high value today could actually be worth far less in the not so distant future.

And then there’s the hassle of owning a real estate note. Not only are there the book keeping problems to worry about month after month, but collecting on the real estate note is not always a straightforward process. And if the property goes into foreclosure, you risk losing some or all of your investment.

Your best bet is to find a IN real estate note buyer (we’re based in Indianapolis!) who will pay you a fair price without jerking you around. If you’d like an offer today, give us a call at (317) 526-4712.

Fortunately, there’s a better solution than holding onto an unwanted note: Convert those notes to cash.

Cash is the most liquid asset. It allows you to use it anyway you like without any obligations or risks.

When you sell all or part of your real estate note for cash, you can use it to make newer, better investments that allow you to grow your portfolio faster. You have more options in terms of reducing debt.

Or you can simply use cash any way you like.

I want to sell my real estate note in Indianapolis now!

If you are interested in learning more your options for selling all or part of your real estate note in Indianapolis, call us at (317) 526-4712 or click here to visit our website so you can learn more about your options.

We can make you an all-cash fair offer on your note payments today, so head over and fill out the form on our site to get a fast-free quote, or give us a call today at (317) 526-4712! 

Here at Chris Buys Homes in Indianapolis we look forward to connecting with you!