- Residential Note Worksheet
- Business Note Worksheet
- Land Note Worksheet
- Commercial Note Worksheet
- Non - Performing Note Worksheet
 |
 |
 |
 |
 |
Have you sold real estate in the past and carried the financing? Are you presently receiving periodic payments, scheduled to continue for years on end? Do you need cash but your money is tied up in the smaller monthly payments? Are you interested in discussing the different avenues that are available to you to pull that much needed cash out of the note?
Intel Note Services is helping individuals just like you get their hands on the cash they need, utilizing the privately or corporately held promissory notes created when you sold real estate and carried the financing. INS buys all forms of real estate paper. Whether individual ma and pa, seller financed notes or large institutionally originated pools and portfolios, Intel has the ability to participate at any level... and size is no object.
"I've heard the discounts can
be horrible...is that true?"
Every note is bought at varying discounts. Discounts are created when you decide to trade years of future payments for cash today. The longer we have to wait for our return on investment (meaning the further into the future the note payments go), the less valuable those future payments are as inflation, cost of living, etc. both have an effect on the buying power of each monthly payment. The market value of your future payments will depend on a variety of factors like the credit worthiness of the party you sold to, the appraised value of the property, how much equity the borrower has, how many timely payments they have made to date, etc.
Every deal is different. We can provide
a no obligation evaluation of what your
future payments are worth
typically within 24 hours.
The main reason for the discount is due to money's value over a period of time.
This is an economic principal that needs to be clearly understood. A contract is a cash flow spread out over several years. It's not an appreciating asset. Each monthly payment is being paid with deflating dollars. What do we mean by deflating dollars?
We all understand the realities of inflation. Inflation means a steady increase over time of the costs of goods and services. If the costs of goods and services are going up in the future, and a dollar is gradually losing its purchasing power, the contract buyer has a problem keeping the cash flow even with inflation. They say to themselves, "What are these monthly payments going to be worth 5, 10, or 15 years from now"?
By discounting the note, the
contract buyer has a chance of keeping the cash flow even with
inflation. How much discount is required depends on how long the
contract is spread over time. A 10-year contract won't require
the same discount as that of a 20-year contract. The faster the
money is paid back the more its worth.
Remember...selling the entire note is not the only option. Matter of fact it's the worst way to go. The further into the future we have to wait for the return on our investment, the less valuable those future payments will be and the greater the discount. You will find this is true for every investor, not just INS. We have different programs that will let you use your future payments like a line of credit-pull out just the cash you need now, and retain future income from the payments not sold at this time. This creative program is known as a "Partial".
The majority of our clients go with a partial purchase. In this fashion you can receive exactly the amount of cash you need right now and retain future income from the payments not touched at this time. Additionally, those future payments can always be liquidated later, should your financial situation ever change.
Full Purchase
Simultaneous Purchase Reverse Partial
Split Disbursement Partial Partial Purchase
Multiple Stage Payout
Learn more on partial purchases
