So what is a Note Buyer or Mortgage Note Buyer?
The term "Note Buyer" is vague and carries with it a variety of possible meanings. However, before we explore the world of buying notes, if you've arrived on this page and you are just wanting a cash offer on your note, CLICK HERE and complete the brief questionnaire.
In the real estate note industry a Note Buyer provides the service of purchasing private real estate notes, mortgage notes, promissory notes or real estate land contracts in exchange for cash. In the simplest terms, a Note Buyer gives his cash to the Note Seller and once he does the Note Buyer begins collecting the payments from the note. This clarifies what a Note Buyer does but it may not help you determine if you need his services based on your current circumstances but let's assume that you do need a Note Buyer to purchase your real estate note for immediate cash. Most note sellers will only go through the process of selling a note once in their lifetime. Therefore finding a note buyer in your community can be difficult because there's not one on every corner and they tend to not advertise so most people have no idea where to start.
Before the internet came along the best place to find a note buyer was the classified section in the newspaper under "Real Estate Investment". Some Note Buyers still advertise in the newspaper and yellow pages. The typical advertisement looks something like this;
Because yellow page ads and classified ads in this section of the newspaper are so expensive, there are very few Note Buyers willing to invest hundreds of dollars every month for such a small amount of information. However, generally speaking, Note Buyers that advertise in the newspaper are typically very good at their trade but their discounts are typically deeper because of limited competition. It only makes sense that if this was the only note buyer a seller could find, the offer is seldom negotiated so buyers enjoy large returns. Fortunately for note sellers the internet has change this occurrence and it's become the best source to find a professional Note Buyer.
Now that you know where to go to find a Note Buyer, where should you search? Google, Yahoo, Bing, YP, the BBB site or Angie's List? It really depends on your risk tolerance and comfort level. If you insist on working face to face with your note buyer then you need to contact a note buyer in your immediate area. My recommendation is to use a search engine, preferably Google because the online yellow pages just like the print directory does not have a specific heading for "Note Buyers" so organic keyword search is the way to go. Type in "note buyers Cleveland, OH" that is if you live in Cleveland, Ohio. Substitute your town or city depending on your location. Your results will look something like this;
The company at the top and all the companies listed on the right side paid for an ad on Google to reach potential note sellers with the message that they buy notes in the Cleveland market. However, many on this page buy nationwide and do not have an office in Cleveland so a face to face meeting is probably not possible. Begin to page down through all the remaining listings, typically referred to as the organic section of the search immediately below the ads. You're looking for a note buyer that either has an office in Cleveland or nearby a nearby location. I would ask three questions; How long have you personably been in the note business? Do you have customers I can call to get a reference? Are you a broker or a principle investor?
Seller Beware! Due to the popularity of late night infomercials, the note buying industry has been misrepresented as a get rich quick business, filling the market with poorly trained rookie note buyers, whose sole misguided purpose for becoming a note buyer in the first place was to get rich quick (as they were told was absolutely possible). Please heed this warning as these individuals are large in number and need to be avoided at all costs because if you get entwined with one of these poor saps you'll waste a lot of time, get very frustrated and probably have to start all over with a qualified note buyer. Check with the Better Business Bureau to verify credentials and back ground. Hopefully this article can help bring some light to the process and make this an overall informative, educational and profitable experience.