Selling A Note With Owner Financing In Florida┃EXPLAINED

Chances are you’ve found this article for one of three reasons:

  1. You’re looking to selling a note.
  2. You’re doing research for a friend or relative who is selling a note with owner financing.
  3. You are interested in learning about how notes work in Miami.

Let’s break down the facts first so you can understand how it works! Plus, you’ll have all the info you need to move forward.

How Do Notes Work?

Before we get started let’s look at a quick definition of notes:

A note is a legal document that serves as an IOU from a borrower to a creditor or to an investor. A note obligates the repayment of a loan, at a pre-determined interest rate, within a defined time frame.


There are numerous types of notes, including the following:

  • Treasury notes
  • Mortgage-backed notes
  • Unsecured notes
  • Convertible notes
  • Municipal notes

In this article, we’ll be looking at notes based on a mortgages.

This is how it works:

  • A home buyer purchases a house and gets a mortgage.
  • The lender provides the mortgage and anticipates the mortgage to be repaid.
  • That mortgage note has value (the future potential repayments).

If the lender wants earlier access to that value, they can sell that note to someone else.

  • A note investor gives money to the lender and, in exchange, is investing the potential of earning those mortgage repayments still to come.

A note is a great way to diversify your investment portfolio utilizing real estate. You invest in the potential for cash flow, while at the same time avoid the headache and stress of being a landlord and actually owning real estate.

What Is Owner Financing?

Owner financing is a transaction in which a property’s seller finances the purchase directly with the person or entity buying it, either in whole or in part. 


Still confused? Don’t worry! We explain it in more detail below.

Owner financing is when the owner of a property either a house, apartment, bungalow, etc. extends their mortgage to a buyer – someone who wants to move in and purchase the property. The buyer can then make “mortgage” payments to the owner without applying for a loan from a bank or lending agency.

When a homeowner sells their house through owner financing:

  1. The buyer is unable to or would prefer not to get financing through a bank.
  2. The seller accepts owner financing and essentially acts as a “bank” or “lender” accepting monthly rent as mortgage payments.
  3. Once the entire mortgage is paid off, ownership of the property transfers to the buyer.

Owner financing can be extremely beneficial if you would like to buy an asset or investment but don’t have the capital or credit available. Or perhaps, you have the funds except you would rather spread out the payments than spend all your savings at once.

Selling A Note With Owner Financing: Explained

If you’ve been searching for information about selling a note with owner financing, chances are you’re looking for any of the following reasons, which may seem confusing at first.

  1. You have a note.

You would like to sell to an investor through owner financing. This way, you will receive regular income, rather than a one-off payment.

  1. You are looking for a note investor or broker.

And, would like to purchase a note via owner financing in Miami, so you can pay in installments for an investment note.

  1. You have a note on a property.

The property in question has owner financing and you would like to sell that note.

  1. You want to buy a note.

But from a seller on a property with owner financing.

As you can see, it’s potentially quite complicated and there are many shades of meaning to the simple phrase: “Selling a note with owner financing in Florida”.

Fortunately, at Sunshine State Buyers, we’re here to help sort it all out. Just pick up the phone and give us a call at (305) 916-3328. We’d be happy to walk you through the meanings of each one in more detail and help figure out which one you’re looking for.

Are you thinking about investing in notes?
At Sunshine State Buyers, we can help you figure out which notes are right for you and how to add notes to your investment portfolio!
Call our office at (305) 916-3328. A member of our team would love to speak with you. Or, click here to fill out our short form.
We’ll get back to you as soon as possible and look forward to discussing “Selling notes with owner financing in Miami“!

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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