Understanding Real Estate Promissory Notes

A real estate promissory note is a written promise to pay a specific amount of money, usually secured by a mortgage or deed of trust on a property. These notes represent debt owed by the borrower to the note holder.

• Performing notes mean the borrower is making timely payments as agreed.

• Nonperforming notes mean the borrower has stopped making payments or is behind.

   

Holding these notes can generate steady income or become a liability if payments stop. Selling notes transfers the risk and responsibility to the buyer, freeing you from ongoing management.

Why Sell Your Notes to R.P. Lenders?

R.P. Lenders focuses on buying and brokering real estate promissory notes, both performing and nonperforming. Here’s why selling to them can be beneficial:

• Quick access to cash: Instead of waiting for payments over years, you get a lump sum upfront.

• Risk reduction: Selling nonperforming notes removes the hassle of collections and foreclosure.

• Fair market value: R.P. Lenders evaluates notes carefully to offer competitive prices based on note quality and market conditions.

• Expertise in note transactions: Their experience ensures a smooth, transparent process.

   

For example, a seller holding a nonperforming note on a residential property might receive 50-70% of the note’s face value, depending on the property’s condition and location. Performing notes typically sell closer to face value, reflecting steady income.

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Fill out the form below if your interested in selling a single note or a pool.