Sell a Commercial Mortgage Note
We buy seller-financed commercial mortgage notes and deeds of trust secured by retail, office, industrial, mixed-use, and larger multifamily property.
- Property types Retail, office, industrial, multifamily, mixed-use
- Lien position First liens preferred
- Status Performing, sub-performing & non-performing
- Underwriting Property income + sponsor
A commercial mortgage note is a seller-financed loan secured by income-producing or commercial-use real estate — a strip retail center, an office building, a warehouse, a mixed-use property, or a larger apartment complex. When an owner sells such a property and carries back financing, they create a commercial note. We buy these notes for cash so the holder can recapture capital instead of waiting out a long amortization.
How commercial notes differ from residential
Commercial notes are underwritten differently from residential notes, and the differences drive both value and process:
- The property's income matters most. A commercial buyer looks closely at net operating income, occupancy, lease terms, and tenant quality, because the property's cash flow — not a homeowner's paycheck — repays the loan.
- The borrower is often an entity. Commercial borrowers are frequently LLCs or partnerships, and personal guarantees, if any, are part of the analysis.
- Consumer-protection rules generally don't apply. Commercial and business-purpose loans aren't subject to the consumer mortgage rules that govern owner-occupied residential financing, which simplifies some aspects of diligence.
- Valuations are more bespoke. Commercial appraisals consider income, comparable sales, and replacement cost, and they take longer than a residential broker price opinion.
What affects your commercial note's value
- Debt-service coverage. The more comfortably the property's income covers the note payment, the lower the risk and the better the price.
- Loan-to-value and equity. A meaningful equity cushion protects the position if the property's income softens.
- Lease durability. Long-term, creditworthy tenants stabilize cash flow; short or speculative leases add risk.
- Seasoning and payment history. A track record of on-time payments lowers uncertainty here just as it does on residential paper.
- Foreclosure environment. As with all notes, recovery speed varies by state; faster non-judicial processes support stronger pricing.
Performing, sub-performing, and non-performing
We consider commercial notes across the credit spectrum. Performing commercial notes are valued on their income stream; sub-performing and non-performing commercial notes are valued on the property and the workout or recovery path. Because each commercial asset is unique, commercial pricing is more hands-on than residential.
Getting a commercial quote
Commercial notes require a bit more information than residential ones. Helpful items include the note and security instrument, a recent rent roll and operating statement, the current unpaid principal balance, and any appraisal or environmental reports. Send what you have and we'll tell you what, if anything, we still need. Quotes on straightforward commercial notes are typically returned within a few business days.
Frequently asked questions
What types of commercial property do you buy notes on?
Retail, office, industrial and warehouse, mixed-use, and larger multifamily properties, among others. The key is that the note is secured by a first lien and the underlying property has a clear, supportable value and, ideally, stable income.
Is a commercial note quote slower than a residential one?
Usually a little. Commercial underwriting depends on the property's income and a more detailed valuation, so we often ask for a rent roll, operating statement, and appraisal. Straightforward commercial notes are typically quoted within a few business days.