With interest rates near historic lows, now is an excellent time to contact a business note buyer about selling your business note investment. The Mortgage Buyer, Inc offers important advice to help you make informed decisions and receive the highest cash price when working with business note buyers.
Facts to know when working with a business note buyer.
Fact 1:
Almost every business note can be sold as long as the note fundamentals are strong.
Fact 2:
There are a number of business note buyer companies. Together, we create a very active and competitive market.
Fact 3:
Business note holders have a number of different sale alternatives available to them; each can be designed to help meet a specific goal you would like to achieve. For example, The Mortgage Buyer, Inc. offers customized business note payment options.
Fact 4:
Providing as much information as possible about your business note will help you receive the highest possible purchase price for it.
Fact 5:
These are the steps necessary to complete the sale of a business note.
The business sale documents must be reviewed.
A credit report on the borrower(s) must be reviewed.
Previous tax returns on the business must be reviewed.
The outstanding balance of the business note must be verified with the Borrower.
At The Mortgage Buyer, we do all of the work and pay all of the expenses necessary to complete these steps.
As previously mentioned, with interest rates near historical lows there will probably never be a better time to sell a business note. If you believe that future interest rates are more likely to go up than down, now would be the right time to turn your note investment into cash. Receive a free, no-obligation business note quote, or contact The Mortgage Buyer, Inc at (800) 618-2485.
Tips for getting the best cash price.
Step 1:
It is important to have complete and accurate information available when you talk with business note buyers. Locate your documents; including the business note and the settlement statement from the property sale.
Step 2:
Do your homework. Contact a number of business note buyers. Ask them how they do business, learn as much as you can and request a purchase proposal from each of them.
Step 3:
Make your decision about selling. If you decide to sell your business note, we suggest selling to a reputable business note buyer that offers you the best combination of price and service.
Step 4:
Enter into a purchase and sale agreement with the business note buyer you have chosen. Before you sign the agreement, be sure to understand who pays the transaction expenses and make sure you are not responsible for any charges if the sale does not go through.
Taking these steps will provide you with multiple purchase offers to consider and also provide some insight into the type of company you will be conducting business with. Choosing the best business note buyer company to work with is as important as receiving the highest sale price.
Establish Market Value of your business note.
We recommend that anyone who wishes to sell a business note first establish its "market value". This can be accomplished by contacting a number of professional note buyers like The Mortgage Buyer, Inc. who purchase privately-held business notes. Take the time to ask questions and discuss your individual situation. Provide all of the information they need to do a thorough job for you and be sure to request all purchase offers in writing.
The market value of an owner-financed business note is defined as the maximum cash price a note holder can sell it for in an active and competitive marketplace. Fortunately for business note holders, an active and competitive market does exist for privately held notes. Online research will produce a large number of companies that purchase business notes. Of these, there are a handful of experienced and reputable companies that you have an opportunity to do business with. We recommend that you contact multiple business note buyers before deciding who to conduct business with.
The factors that note investors will consider when evaluating your business note for purchase include:
The type of property securing the business note.
The size of the cash down payment made at closing.
The amount of income and cash flow generated by the business.
The interest rate on the face of the business note.
The number of monthly payments remaining on the business note. The time-value-of-money dictates that shorter term notes are valued more highly than longer term notes.
The current level of interest rates. With market interest rates still near historical lows the market value of business notes has never been higher. If/when note interest rates begin to rise the market value of fixed-rate notes will react inversely and begin to fall.
One of the most important factors in determining the market value of a business note is the strength of the borrower’s credit score. Everything else being equal, the higher the borrower’s credit score is, the higher the market value a note will be.
John was personal and professional from my initial contact to the final sale of my note. He explained note buying and reinforced certain points of protection for me as the seller. I felt very comfortable in my initial contact after searching online for a business note buyer as his web site was direct, clear and understandable. I did review everything John explained and proposed with my own attorney and was advised he was accurate on all counts. John was very thorough and kept me updated as to the process right up to completion. I am very happy with my results and highly recommend John Avenia.
If considering the option of liquidating a business note, you should reach out to several business note buyers for information. A few calls should be sufficient to explore your options. To help establish the market value of your business note, call The Mortgage Buyer at (800) 618-2485, or contact us via email, or complete our online note quote form.
