Just incase you're not sure what note liquidation is, I’ll break it down for you.

   A note, also know as a promissory note, is a promise to pay on paper. It’s like an IOU. For example: I buy a house from you and instead of getting a loan from a bank, you tell me to pay you so much for so long, until the house is paid in full. What you are doing is called owner financing. You are now the bank, and that piece of paper that says I owe you money for the house, is a promissory note.

   Time passes and you decided you don’t want monthly payments anymore, you want all your money in full. You want to liquidate your note. That’s where I come in. I deal with investors that buy these notes.  

  Keep in mind that the promissory note does not have to be for real property only. You can have some types of personal property liquidated as well, like an airplane or a yacht. Although, real property is easier to sell merely because it’s not moveable. Also keep in mind most promissory notes usually need to be held by some kind of tangible collateral, although there are some exceptions to this as well. Two examples of this would be an annuity or a structured settlement.

  When investors buy a note it is usually referred to as a discounted note and along with interest earned is one of the ways they make their money. Lets say you have a $100,000 note that won’t be paid in full for 15 years. You can either wait 15 years for all your money or you can get the majority of it now. Keep in mind $100,000 dollars is not going to have the same value 15 years from now. Think of what $100,000 dollars bought 15 years ago and what it buys now. This may give you an idea of why some people choose to liquidate their notes, or part of their notes, rather than hang on to them. Of course this is a generic figure based on 0% interest. If your note generates a lot of money from interest, you’ll probably get a higher price than you would from a 0 to low interest note. It will be up to you at this point to weigh out the figures and see if liquidation is right for you.