Sell a Promissory Note

A promissory note is the written promise to repay a debt — the document that spells out the amount borrowed, the interest rate, the payment schedule, and what happens on default. In real estate, the promissory note is the asset; a mortgage or deed of trust secures it against the property. When you "sell a mortgage note," what you're really selling is this promissory note together with the security instrument that backs it. We buy real estate promissory notes for cash.

Secured notes are what we buy

The single biggest factor in whether a promissory note is valuable — and sellable — is whether it's secured by real property. A secured note gives the holder a path to recovery if the borrower defaults: foreclosure on the collateral. An unsecured promissory note (a personal IOU with no property behind it) depends entirely on the borrower's willingness and ability to pay, which makes it far riskier and worth much less. We focus on secured, recorded, first-lien real estate notes.

What makes a promissory note worth more

• First-lien position. The note is paid before other claims on the property, protecting the investment-to-value cushion.
• A fair interest rate. A higher rate relative to the balance produces a larger income stream and a stronger price.
• Seasoning. Documented on-time payments lower the buyer's risk.
• Equity. A lower loan-to-value ratio means the property comfortably covers the balance.
• Clean documentation and chain of title. A properly executed original note, a recorded security instrument, and an unbroken assignment chain let a buyer confirm the right to enforce the note and close quickly.

Common promissory note issues

The problems that slow a note sale almost always trace back to paperwork:

• Missing originals. The original note matters; a copy can complicate enforcement.
• Ambiguous terms. Vague payment, interest, or balloon language creates uncertainty.
• Gaps in the assignment chain. If the note changed hands before, each transfer needs to be documented.
• Unrecorded security instruments. A lien that was never recorded may need to be perfected before sale.

None of these are necessarily deal-breakers — most can be cured — but they affect timing and price. Organizing your documents before requesting a quote is the best thing you can do.

Full or partial, performing or not

You can sell an entire promissory note or, through a partial purchase, just a portion of the upcoming payments. We buy both performing and non-performing notes. Tell us the balance, rate, payment, status, and a little about the property, and we'll provide a free, no-obligation quote — typically within one business day.