The Trusted Home Buyer Logo602-456-4440

How To Value A Real Estate Note For AZ Note Buyers And Sellers

Martin Boonzaayer

December 5, 2019

If you have investing in a note or are thinking of investing in one, of your first thoughts will be to the value of the note – how much is it worth and how much can you buy or sell it for?

So you’re probably wondering how to understand the value of a real estate note in Phoenix note buyers and sellers. 

There isn’t an easy answer but in this blog post you’ll learn some of the ways that a note can be valued, to make you better informed…

How To Value A Real Estate Note For Phoenix

While note all of these factors will influence the value of every note, it’s important to see how a note can be valued. Probably the best strategy is to get in touch with us and we can help you understand how we value the notes we sell. Reach out to our team by clicking here or by calling 866-488-9923.

  • You can value a note by the amount owed on the note, including both the principal and interest owning.
  • You can value a note by whether or not it’s a performing or non-performing note (although the definition of performing versus non-performing varies, in general you’ll find that a non-performing note is one where the person who is supposed to be paying the underlying mortgage is not paying it back. It’s important to note that non-performing notes still have a value!)
  • You can value a note by what position that note has in a line-up of mortgages on the property (such as a first position or a second position).
  • You can value a note by how much equity is in a note (notes may be equity, partial equity, or no equity).

As you can see, there are many factors that can go into how to value a real estate note for AZ note buyers and sellers. In some ways, even the economy and the location of the property will play a factor in the value of the note, since houses in some areas might be priced lower than houses in other areas.

If you’re thinking about investing in notes, you also need to remember this: the value of a note is not just the specific price of how much the note costs to invest in, but rather how much value you’ll get out of the note once you’ve invested in it.

Example: Consider two investments – a portfolio of performing notes or, for the same price, a rental property. Different investors may have different opinions on which one is valued higher even if they could be bought for the same price… but the portfolio of performing notes will generally produce cash flow little or no work while the rental property may require a lot of work to maintain. (Note: this is a simplification for illustration purposes only; of course there are other factors at work here!)

If you want to learn more about notes, find out what kind of notes we have and how we value them, simply click here and enter your information on the next page to get in touch with us.

Explore more

May 19, 2022
How The Trusted Home Buyer Helps Seniors And Their Families 

Our team is passionate about helping seniors when they are ready to transition to senior care living. Our team members are Moms House certified and have been actively out in the community, networking with people in the senior health industry. Our program was designed to help seniors and their families with one of the biggest […]

Read More
March 24, 2022
How To Sell A House In Probate

After there is a death in your family, the idea of selling the family home can be a very difficult one to make. Not only are there memories tied to the home, but there is also a large list of complications that come with the probate process. Understanding how this process works can be a […]

Read More
March 2, 2022
I Want To Sell My Mobile Home Quickly

If you want to sell your mobile home quickly, you can take a few routes, each with its own level of work on your part. For example, you have the option to sell to an investor for quick cash. You can fix up your property and list it yourself. You can hire a real estate […]

Read More
February 9, 2022
How to Declutter a Hoarders House

If you own or have inherited a hoarder home and want to declutter, it can be very overwhelming. Typically there are years of accumulation of stuff that makes the process seem impossible at times. But it is not impossible, and we have a helpful list that will aid in your cleaning and help you determine […]

Read More
The Trusted Home Buyer Logo
Copyright © The Trusted Home Buyer
WE BUY HOUSES IN:

4.7 61 reviews