Note Buyers Turn Future Payments
Into A Lump Sum Payment now

Are you receiving periodic payments on a private contract or note?

Note buyers provide a lump sum payment for private notes and contracts
Professional note buyers can help you sell your private note or contract, converting all or a portion of it into a lump sum payment of cash to use for any purpose, such as:
  • Buying a home
  • A promising Investment
  • Starting a business
  • Paying college tuition
  • Taking a vacation

Private contracts and notes are created for many different purposes in a vast array of industries, but they all have one feature in common: They promise to pay the contract holder a certain amount of money in the future.

Most people holding these promises of future payments believe they have no choice but to wait for their money, yet, for most, this is simply not true.

The cash flow industry includes investors for nearly every conceivable type of contract or note. In most cases, these investors can either purchase your entire contract or just a partial interest in it to give you a specific sum of money immediately. They accomplish this by discounting the value of the money you are to receive in the future to a present value to earn a certain yield – or return on their money. To put it simply, investors make a profit by giving you fewer dollars today than you would receive by waiting for your future payment or payments. You have use of the money now; the investor does the waiting, but earns a profit when the contract or note is eventually paid in full. This is the time value of money.

To sell your contract or note, you can try to locate the investors who are willing to buy the particular type of contract you own by yourself and then shop among them for the lowest possible discount. Or you can use a professional contract buyer to save yourself a lot of hassles and headaches.

What Are Professional Note Buyers And How Can They Help Me?

Professional note buyers are the eyes and ears for the private cash flow industry. They are either employees of larger investment houses who buy contracts on behalf of institutional investors – insurance companies, pension plans, and the like – or they are independent note brokers. In either case, it is the note buyer's job to locate and screen potential sellers, gather documentation, and package it for the investor.

You can be certain that the employee contract buyer will be looking out for the best interests of the company that writes his paycheck. A truly professional note broker, on the other hand, will represent you in the transaction, with the built-in incentive to offer you the best combination price and service.

Just like a master craftsman, the professional note broker will have had years of experience in buying notes. He can:

  • Save you time, money and frustration selling your note
  • Draw upon experience and leverage industry contacts to close on your note sale quickly
  • Use his own money or private investors to buy a note that institutional investors won't touch

Whether you choose to work with a note broker or try to sell your contract on your own, take extra care to find a true professional to guide you through the process. Note buyers are not licensed or regulated, so many have come into the cash flow industry in recent years with their eyes focused squarely on getting rich in a hurry – and, unfortunately, at the note sellers' expense.

The first question a true professional – one who is looking out for your best interests – should ask you is why you are selling your contract. (No, this is not just to be nosy.) If, for example, your private mortgage note is paying you a higher interest rate than is generally available in the market, your contract buyer might structure a partial sale to give you the lump sum payment you truly need now without giving up your good investment entirely.

Next, your contract buyer will gather the information the investor needs to quote a price for your contract. So, to continue the example of a private mortgage note, he will ask you about the note's current principal balance and interest rate, the monthly payment, whether there is a balloon payment due and when, and the number of payments remaining. He will ask you for a description of the underlying property and whether the payor has made all the required payments and paid them on time.

Within a few days, you should have an offer, contingent on you supplying the documentation to support what you told your contract buyer.

Money Tip

Are you owner financing a buyer of property you have for sale?

Note buyers can help you construct a note with the maximum possible value . . . before it is created.

All required documents will be packaged for the investor, and after the package has been accepted, the sale of your note will be closed. You receive the lump sum payment and the note investor begins to receive the monthly payments you normally got.

If you sold a partial – a pre-determined number of monthly payments in return for certain amount of money you wanted – when the investor has collected the agreed-upon number of payments, the payments revert to you. In many cases, a partial sale not only gives you an immediate infusion of cash, but you can actually net a greater return on the note than you would have without selling the payments!

What Types Of Notes & Contracts Will Note Buyers Purchase?

At any given time, there are millions of privately held notes and contracts of various types outstanding in the U.S. On the other side of the coin, there are billions of dollars in funds from private and institutional investors eager to buy them.

Mortgage notes and land contracts created through the sale of property are the most widely held private contracts, with lawsuit settlements (also called structured settlements) also fairly common. Finding note buyers for these instruments online is not difficult.

If you are interested in selling something other than a private mortgage note or a lawsuit annuity settlement, chances are very good that there are investors that specialize in your type of contract. For example, our investors are actively buying:

In other words, virtually any type of cash flow you might be selling. Some note buyers focus on one type of contract, and you will find many specialists is mortgage notes and structured settlements . For the more unusual contracts, a note broker is your best bet for locating an investor, negotiating the price, and handling all the processing details.

Be Careful!

You are considering the sale of a valuable asset. Take all possible precautions.

  • Find a professional note broker or contract buyer you feel comfortable working with.
  • Never pay any up-front fees. When the sale has closed, the note broker will be paid by the investor, not by you.
  • Have all the information about your note, the underlying property and payor credit readily available to avoid frustration and get the highest offers for your note.
  • Inform your payor that you intend to sell your note or contract and that the only change will be is where he sends the payments. He will receive a letter and new payment coupons from the contract buyer after your sale has closed.

Bottom line? The best note buyers in the business are full-time professionals who work for win-win solutions to each and every transaction.

Arm yourself with the latest knowledge and information. Sign up for the free monthly Smart Business Financing Newsletter today!

Subscribe to our feed to be notified when we add new articles and pages to

Want one-on-one, no-hassle help now? Contact us anytime to discuss your specific needs with a knowledgeable business financing consultant.

Subscribe to:

Smart Business Financing News

Your Name

E-mail Address


Don't worry -- your e-mail address is totally secure.
I promise to use it only to send you Smart Business Financing News.

Free E-Course!
Free e-course on cashflow notes, software, downloads, books, forum and much more:

A Novel Solution For America?

Check out the novel by AEGIS's very own Mike Lieber!

Ops Populi: Inception By Mike Lieber

Click the book cover to visit the publisher's web site where you can  read an excerpt, reviews, and more!


International Association of Commercial Finance Brokers