Florida Note Buyers And Sellers! How To Value A Real Estate Note

Have you invested in real estate notes? Are you considering investing in or selling a note in Miami?

If so, you’re probably wondering, “How do I value a note?”

How much is my real estate note worth?

What can I sell my real estate note for?

Your main concern is most likely trying to understand the value of your real estate note on the market.

Luckily, we’ve put this article together to explain some of the ways both buyers and sellers can value real estate notes in Miami.

Discover How Buyers & Sellers Value Real Estate Notes in Miami.

While not all of these factors will influence every note’s value, it’s a good idea to know how different notes can be valued.

The best strategy is to get in touch with us at Sunshine State Buyers for a quick answer. We can help you understand how we value the notes we sell and, in turn, offer you advice on buying and selling notes in Miami. Reach out to our team by clicking here or by calling (305) 916-3328.

You can value a note by:
  1. The amount owed on the note!

This includes both the principal and interest owed.

  1. Whether or not it’s a performing or non-performing note.

Although the definition of performing versus non-performing varies. In general, a non-performing note tends to be one where the person who is supposed to be covering the underlying mortgage is not paying it back.

For more information about non-performing notes, click here.

Don’t panic! If you have a non-performing note, you don’t need to worry. They still have value.

  1. What position the note has.

This refers to the note’s position in a line-up of mortgages on the property, such as a first position or a second position.

  1. How much equity is in a note!

Notes may be equity, partial equity, or no equity.

How To Value A Real Estate Note In Miami

As you can see, many factors can affect the value of a real estate note for Florida note buyers and sellers. Plus, even the economy and the location of the property can be a factor! This is because houses can be priced differently depending on their location and state of the economy.

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.

A Simplified Scenario:

Consider two investments! Both cost the same amount to invest in.

A portfolio of performing notes.

A rental property.

Even though they cost the same, different investors may have different opinions on which should be valued higher. For instance, consider the following factors:

The portfolio will typically produce cash flow with minimum effort on your part. You won’t have to look after a physical asset or be an actual landlord!

Whereas the rental property may require a lot of work to maintain and there’s no guarantee you will always find upstanding, reliable tenants.

Note: this is a simplification for illustrative purposes only; of course there are other factors at work here!

Do you want to learn more about notes?

Would you like to know what kind of notes we have and how we value them?

Then, call our office at (305) 916-3328. A member of our team would love to speak with you.
Or, click here and fill out our short form to get in touch.

Our team at Sunshine State Buyers also buys real estate in Miami, Florida. Check out our website >>> We Buy Houses Fast Florida!

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David Veras

David Veras was born in Hialeah, Florida and has been involved in Real Estate since February 2019.

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