Own a real estate note and want to better understand your options?
If you are receiving payments from a seller-financed real estate note, an initial assessment can help organize the key facts, identify information that may still be needed, and determine whether a deeper review or potential sale discussion may be appropriate.
An initial assessment is not an appraisal, legal opinion, investment recommendation, or guaranteed purchase offer. Any potential transaction remains subject to verification, underwriting, due diligence, documentation, provider requirements, and final agreement by the applicable parties.
A useful assessment starts with the facts about the paper, the payer, and the property
The more complete the information is at the beginning, the easier it is to determine whether the note deserves deeper review and what additional documentation may still be required.
The Note
Start with the basic terms of the repayment obligation and the payment stream you currently own.
- Original note amount
- Current unpaid balance
- Interest rate
- Monthly payment amount
- Payment frequency
- Original term
- Remaining term
- Maturity date
- Any balloon payment
The Payer & Payment History
Payment performance helps show how the note has actually behaved since it was created.
- How long payments have been received
- Whether payments are current
- Any late or missed payments
- Whether the note has been modified
- Who currently services the payments
- Available payment history
- Any known default or collection issues
The Property & Lien
Because the real estate may secure the obligation, the property and lien position are important parts of the review.
- Property address
- Property type
- Estimated current value
- Known property condition
- Mortgage or deed of trust information
- Lien position
- Any known senior or junior liens
- Available title information
Documents that may be requested
You do not necessarily need every document before making the first inquiry, but a deeper assessment may require copies of available records such as:
- Promissory note
- Mortgage or deed of trust
- Assignments or endorsements
- Payment history
- Servicing statement
- Amortization schedule
- Settlement or closing documents
- Property information
- Title information
- Insurance information
- Appraisal or valuation, if available
- Relevant modification documents
The first step is screening — not making an immediate offer
Once the initial note information is submitted, the goal is to determine whether the facts are complete enough for review, whether additional information is needed, and whether the note appears appropriate for deeper evaluation.
Initial screening
The submitted information is reviewed for basic note terms, payment performance, property details, lien position, seller goals, and any obvious missing information.
Clarify missing facts
If important information is incomplete or unclear, the note owner may be asked to provide additional details or supporting documents before meaningful review can continue.
Deeper evaluation or referral
If the note appears appropriate for further consideration, the information may move into deeper underwriting or be referred to an appropriate buyer, provider, or other party for additional review.
Determine the next step
The result may be a request for more documentation, a discussion of possible options, referral for additional review, or a determination that no further action makes sense at this time.
If the note merits deeper review
Additional verification, underwriting, documentation, property review, title review, servicing information, or buyer-specific requirements may be needed before any potential terms can be discussed.
If the note is not a fit
Not every note will be appropriate for a particular buyer, provider, or transaction structure. A decision not to continue does not necessarily mean the note has no value; it may simply fall outside the current criteria or available opportunity.
Tell us about the note you currently own
Complete as much of the information below as you reasonably can. The initial review is intended to organize the facts and determine whether additional information or deeper evaluation may be appropriate.
Have a note to review, or still learning how notes work?
Use the path below that best matches where you are today. Note owners can prepare for assessment, while others may want to learn more about Income Notes before taking the next step.
Prepare for Note Assessment
Gather the note terms, payment history, property details, lien information, and your goals so the assessment can be submitted when the new SSEE form and CRM connection is activated.
Review the Assessment FormExplore Income Notes
Learn how real estate notes are created, evaluated, sourced, bought, sold, and serviced before deciding whether note ownership or another role interests you.
Explore Income NotesExplore Income Notes Training
Go deeper with progressive training covering fundamentals, sourcing, evaluation, Cash Now, Cash Flow, note buying, servicing, and advanced note concepts.
Explore TrainingA note assessment is preliminary and does not constitute an appraisal, legal opinion, investment recommendation, binding offer, or guarantee of purchase. Any potential transaction remains subject to verification, underwriting, due diligence, documentation, provider requirements, and agreement by the applicable parties.