How note selling works, what affects price, which documents you’ll need, and the legal and tax questions to ask your advisors.
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Selling a note is a big financial decision. This guide explains the steps, what shapes the price, which documents you’ll need and which questions to take to your attorney and tax advisor.
The example on the right shows how it works: the payments still owed to you become one lump sum at closing. Your borrower keeps the same terms and simply pays the new holder.
When you sell property or a business and accept payments over time, the buyer signs a promissory note and usually a mortgage, deed of trust or land contract that secures it. Selling that note means a buyer pays you a lump sum today for the payments still owed. You can sell the whole note or only a set number of payments.
People sell notes to reinvest, pay off debt, settle an estate, avoid the work of collecting payments, or reduce the risk of the payer falling behind.
You share the basic terms: property or business, balance, rate and payments left.
The buyer prices the note and sends a no-obligation offer for a full or partial sale.
The buyer checks the documents, the payment history, the title and the property or collateral.
A title company or attorney prepares the assignment, you sign, and the funds are released to you.
Every note is priced on its own. These are the main things a note buyer looks at, and what you can do to help:
Free, no-obligation quote. Most people only need the basic terms to start.
Missing something? That’s common with private notes. Start the quote anyway; we’ll tell you what’s needed. You can also upload your documents securely.
Assignment and notice rules vary by state. A title company or attorney makes sure the transfer is recorded correctly.
You’ll sign an assignment of the note and of the mortgage, deed of trust or contract, and endorse the note to the buyer.
Part of what you receive may be taxed as a gain on the original sale of the property or business. Ask your tax advisor how it applies to you.
Interest you already received is usually taxable income; selling the note changes what you’ll receive going forward.
If you reported the original sale as an installment sale, selling the note can change that reporting.
CashNoteUSA does not give legal or tax advice. Talk with your attorney and tax professional before you sell.
The signed promise to repay: amount, rate, payment and term.
The recorded document that secures the note with the property.
A sale where the seller keeps title until the buyer finishes paying; also called a contract for deed.
Whether the note is first or second in line against the property.
Selling a set number of payments and keeping the rest.
The document that transfers the note and its security to the buyer.
Whether the payer is current or behind on payments.
A large lump sum due at the end of the note.
Owner-financed homes, land and small rentals.
Seller financing from the sale of a business or equipment.
Notes secured by retail, office, industrial and multifamily property.
Private notes secured by real estate or other collateral.
Contracts for deed and installment land contracts.
For investors who want to buy performing notes.
Request a free quote with the basic terms of your note, or ask the Note Assistant.
No. We explain how a note sale works; your attorney and tax professional can advise on your situation.
Yes. A partial purchase buys a set number of payments and the rest come back to you.
This is the form the “Get my cash offer” buttons lead to. Fill in what you know about your note; you don’t need every detail to start. A note specialist reviews it and calls you with a written offer. No cost, no obligation.
Want to read more first? See how the note selling process works or our FAQ.
