selling notes

[jbradley7]

What is the name of your state? Georgia
Can someone explain what selling notes are?
What are the advantages and disadvantages?
Are there any tax penalties or advantages?
Thanks...

 

[seniorjudge]

I borrow $100 from you and sign a promissory note.

You decide later you really would like your money now.

You sell the promissory note to John for $80.

I pay John.


Taxes? I can't even read a 1040EZ so don't ask me.

 

[MortgageGuru]

When it comes to a mortgage note, the numbers are much more lucrative.

I borrow $100,000 from you and sign a promissory note.

You decide later you really would like your money now.

You sell the promissory note to John for the balance plus a point or 2.

I pay John.

 

[jbradley7]

ok...excuse my slight slowness...
Let me explain what I'm trying to do. I have a rental property with a balance of approximately $68,000. I'm considering selling the note. I've been hearing about this method and don't know anything about it. So, I wanted to get a thorough understanding of this method and decide whether I want to take advantage of this.
What I would do is actually use the money to make other real estate investments.
I hope this help you guys give me a clearer understanding...I greatly appreciate the responses...Thanks!

 

[seniorjudge]

You need to find someone to buy your note. Who those people are, I have no idea.

You might call mortgage lenders in your area to find out to whom they sell their notes.

 

[HomeGuru]

ok...excuse my slight slowness...
Let me explain what I'm trying to do. I have a rental property with a balance of approximately $68,000. I'm considering selling the note. I've been hearing about this method and don't know anything about it. So, I wanted to get a thorough understanding of this method and decide whether I want to take advantage of this.
What I would do is actually use the money to make other real estate investments.
I hope this help you guys give me a clearer understanding...I greatly appreciate the responses...Thanks!

**A: what an idiot.

 

[jbradley7]

you know "homeguru" you are quite irritating... this is why we have forums such as these websites to inform not make idiots of ourselves...so why don't you stay "catatonic" in your state...or perhaps your life is that boring where you just seat around and send over 48,000+++ posts that makes no sense.

**A: what an idiot.

 

[HomeGuru]

you know "homeguru" you are quite irritating... this is why we have forums such as these websites to inform not make idiots of ourselves...so why don't you stay "catatonic" in your state...or perhaps your life is that boring where you just seat around and send over 48,000+++ posts that makes no sense.

**A: post reference.

 

[seniorjudge]

you know "homeguru" you are quite irritating...

I agree...that's why we keep HG around; make sure everybody's on his or her or their toes!

 

[HomeGuru]

And I agree that you agree.