Press Release: Nationwide Secured Capital Releases First Kindle eBook on Mortgage Note Investing

Kindle eBook now for sale on Amazon.

Nationwide Secured Capital has just published its’ first eBook on Amazon for Kindle, “The Mortgage Note Investment Primer”. The book was written for investors seeking to learn the basics of investing in seller financed and private mortgage notes in the note investor market.

 

Seller financed mortgage loans are also known as seller financed notes, carry back financing, or owner financed notes . They are created when an owner of a property sells the property, and carries back some or all of the purchase price of the property as a loan. The loan is secured with the property as collateral for repayment and the mortgage or deed of trust has been recorded.

Private mortgage loans differ from traditional real estate mortgage loans in that private mortgage loans are created when a private individual lends money to another individual and secures the loan with the property as collateral for repayment. This private individual is not subject as much government regulation that applies to regular lenders such as banks.

The note is the legal document that represents the claim to the repayment of these loans.

This new Kindle eBook will teach readers what goes on inside Nationwide Secured Capital when considering purchase of private mortgage notes for their investment portfolio. The eBook discusses what the advantages and benefits are in mortgage note investments, as well as the risks, and what returns can be realized. The eBook was written by the experts at Nationwide Secured Capital. Other chapters in the book include topics on how private mortgage notes make money, how notes are valued, how one can invest in notes, and how the investment is secured.

The eBook can be purchased on Amazon at an introductory price of $29.95. The hard copy is sold for $199.

Nationwide Secured Capital is a leading buyer of 1st lien seller financed and secondary market mortgages and deed of trusts secured by real estate nationwide. The principals of Nationwide Secured Capital have decades of combined experience with the purchase of hundreds of millions of dollars in notes. They all personally purchase and hold these investments in addition to portfolio acquisitions to their buying groups. Nationwide Secured Capital works with sellers and investors all over the United States and manages the SMILE FUND ONE LLC – registered with the SEC as an exempt offering for investors

Are You the Executor of an Estate with Mortgage Notes?

Introduction

If someone close to you has passed away and named you as the Executor of their estate, then make sure you look to see if there are one or two mortgage notes in that estate. If so, it is then up to you to figure out what the mortgage note(s) are worth and what to do with them now that your loved one has passed.Navigating the unfamiliar world of note business, especially if it is sudden, contains a lot of pressure and puts a lot on your shoulders. So, you will need help—but luckily, with help, the process is not as difficult as it sounds.

In fact, the person who left the mortgage notes to you has left you an investment that you can continue to keep, or cash in and sell the note for money as one would a home.
We have worked with many Executors and through our experiences, we have learned that there are six main steps that have helped the most to simplify the mortgage note process. You can read about these six steps and download a note selling checklist.
So, let us briefly take a look at the first three steps and outline what you can do to make sure that the mortgage notes left to you are valued accurately and handled with professional hands.

1. Clearly Define Family Expectations

This is an important first step that precedes the actual note valuation process. It is crucial to clearly define family expectations. If you have siblings that are also beneficiaries on the estate, this is especially true—they own part of this estate too and must be consulted with and it is a good idea to get an idea of what everyone’s goals are for the mortgage notes in the estate. Perhaps one sibling wants to sell it and another, or perhaps you, do not want to sell.
These minor disagreements are common when it comes to beneficiaries and especially when more than one person is left as a beneficiary. However, we have also seen these disagreements turn into a full-blown family feud, so be sure to sit down or pick up the phone and make sure all of the beneficiaries named know what has been left to whom, what they want to do with the note, and what you want to do with the note. It is necessary to make sure that everyone is on the same page before proceeding further.

2. Become Familiar with the Note Valuation Process

If you have never held a mortgage note before, or never even heard the term, you are not alone. This seems like it would make selling difficult if you have slim or non-existent knowledge on the subject. You will hear terms such as loan-to-value (LTV), discount, seasoning, selling, splitting the note, and the term note, itself. Luckily, our guide to mortgage notes gives you an excellent starting knowledge of notes, what they are, how to sell them, how to keep and utilize them as investments, and what to do next.
The best way to familiarize yourself with the valuation process, is to seek the help of a professional who can guide you through this process. You want to seek out a note buyer or note broker, who will take the time to explain the whole process to you, answer any questions, explain how selling will benefit you, update you on current real estate market conditions, and your part in the process and what you can expect to receive at the end of it.
You can also read through our blog for tips and best practices for selling mortgage notes—advice and information that you can trust.

3. Consider All Options

Remember, you do not have to sell the full mortgage note. If a dispute does arise between beneficiaries about selling versus continuing to hold onto the note and receive the monthly payments (in essence, the ‘mortgage’ paid by the ‘payor,’ or home owner), you can consider a split payment partial.
With a partial, you can sell as much or as little of the note as you want. This could be the solution that may satisfy all of the parties involved if such a dispute comes up. Make sure that if you decide to take this route, to definitely get in touch with a note buyer or note broker, who can guide you and the other beneficiaries through this process.

When is the Best Time to Sell a Mortgage Note?

There is no sure-fire or easy answer to the question of when the best time to sell your mortgage note is. When a mortgage note owner sells their note, they typically do so for a variety of reasons, both personal or because it is in their best business interest to do so.

Signs that Selling a Mortgage Note Would be Beneficial:

If Possible, Sell When Note is Not in DefaultSince mortgage owners sell their notes for business and personal reasons alike, the question changes more into identifying when the best time to sell one’s note is.

Ideally, one should sell their mortgage note when it is NOT in default, if possible. An example of a note in default is if the owners stop paying the mortgage payments to the note holder. While nearly any note is sellable, even ones in default, mortgage notes that are in default are sold at a much larger discount, and the seller loses money on the deal. This is because the mortgage note would pose a greater risk to the note buyer.
If there are any concerns that your payer is at risk of future default, it may be a good time to sell your mortgage note before this occurs. This way, you can get more cash out of the note before it is subject to discount due to default.

Sell When You Have the Finances to SellWhen you sell your mortgage note, it is best to do so during a time where you can afford not having the monthly mortgage payments while it is being sold or brokered to a note buyer. This gap is where you will have no mortgage payments, but you also have not been paid yet for your mortgage note.So, make sure you do not need the money for a few weeks, ideally, for at least one month, or four weeks. If you are in need of cash immediately, then selling your mortgage note is not the best way to go about that.

Selling your note is an option that takes three to four weeks to complete and there are several entities/parties that are involved in the process: from title and escrow companies, the appraisers, and servicers. Coordinating the buying and selling of a note takes time and may encounter some delays.
Sell your note before you are in need of the money, or save up money before selling the note, so you have enough to handle your personal and business fees for at least a month. If you are in need of immediate cash, and must sell your note, you could take out a small, personal loan and pay the loan back plus interest, after your note is sold. Interest for small, personal loans are often high, and you must realize that you would be taking a small profit cut from the sale of your mortgage note, depending on how much your mortgage note is worth and how much money you took out with a loan.

Sell When you Have the Time to Sell

Not only is it best to sell your mortgage note when you can afford to do so, financially, but it is important to have the time to sell it as well. This way, you can shop around for different buyers or have your mortgage note broker shop around, for the best deal possible.

Time gives you the ability to negotiate a fair price for your note, rather than being the one desperate to sell—note buyers know how to play hardball when note sellers are desperate to sell and do not have the time to negotiate. Time gives you the upper hand.
Sell When the Sale of your Note Offers a Better Investment OpportunitySelling your mortgage note when doing so can allow you to take advantage of another and better investment opportunity, is simply good business. Since it is a personal investment, you have to be aware of better investments out there or have someone looking for you.

Most notes pay a decent interest rate and they are a good investment since the note holder receives the mortgage payments and can then sell the home at full market value—this investment is for the patient and those who plan on investing and reaping its rewards years later.
If another investment opportunity shows up that could pay you a better return, then this is a great time to sell your note. Many investors use cash from their mortgage note to buy into another investment that will produce them a higher return.

Sell When Your Property Hits the Value Sweet Spot

When your property is calculated to be worth 30% + more than the remaining balance; that is an excellent time to sell your mortgage note. This is the value sweet spot. Make sure to pay attention to your mortgage note’s LTV (loan-to-value).
To calculate the LTV, simply divide the remaining balance by the property’s value. The best time to sell your mortgage note is when your loan-to-value is below 70%.
A high LTV results in a greater discount and therefore, less money in your pocket. With the current real estate market, the condition of the property will also affect the LTV. Although the two factors are out of your control, you can stay informed on the market conditions and take action to sell your note when the time is right. This will require a steady checking of your LTV, so make a note to check it bi-weekly or monthly for your benefit.
Consider Selling a PartialDepending on the terms of your mortgage note, some note buyers will not be able to cash out your full note.
However, a partial could actually be a better option for you. Many note holders actually receive more cash in their pockets over the lifespan of the note by selling a partial. If you are not as familiar with selling a partial note, contact a note specialist to learn more about it. You can also read more about partial note sales here.

Conclusion
So, there you have some considerations to take into account when deciding when the conditions are best for selling your mortgage note. The best time will depend on your financial needs, your time commitments, and your future plans. If it seems like now is the right time for you to sell your mortgage note, begin by getting a free quote. That is always the best way to start the process and determine if it is worth selling right away, or if you should wait it out a bit more for more favorable conditions, if possible.

Is there a difference between a Promissory note and a Mortgage?

Promissory notes and mortgage notes, these two terms have been thrown around for years, sometimes even used interchangeably.  This is especially true when it comes to buying a house.   Is there a difference between a mortgage note and a promissory note?  If so, do you know what it is and does it matter?

Yes, there is a difference between a mortgage and a promissory note.  The mortgage, also known as a deed of trust, is the document that provides the security for the loan.  The promissory note is the actual binding document with the promise to pay back the loan. Each document should contain some items to be considered a promissory note or a mortgage.

The promissory note must include the name of the borrower, the address of the property (if applicable), the interest rate, either fixed or adjustable, the amount of the loan, the term or number of years of the loan, and a late charge amount.  It will include both the lender’s and borrowers rights and responsibilities.  This document is not recorded in the county land records.  Think of this like the pink slip when selling a car. The lender is the one who holds the promissory note during the time the loan is outstanding. When the loan is fully paid off, the note is then given to the borrower like a pink slip is given to the fully paid off owner of a car. Promissory notes can be used for a variety of loans such as commercial loans, student loans, bank loans, and real estate loans.  It does not have to be tied to a physical piece of property.

The mortgage note, or deed of trusts’ purpose is to provide security for the loan.  It must include the name of the borrower, the address of the property, and the legal description of the property. It will also contain a clause that will allow the lender to demand the entire balance of the loan should the borrower default on loan.  This is called an Acceleration Clause. If the borrower continues to default on the loan, the lender can begin foreclosure proceedings, and the real property can be sold to satisfy the debt.  Unlike the promissory note, the mortgage note is recorded in the county land records after the borrower has signed it.  When the loan is paid off, the lender will record that the loan has been satisfied with the county land records.

When purchasing a home, the borrower will actually be signing two separate documents, the promissory note and the deed of trust.

Promissory notes are a negotiable instrument that can be transferred or sold and endorsed (signed over), to a new owner. When the new owner of a note first attempts to collect on the note, a letter should be sent to the borrower asking for repayment.  This should include a copy of the promissory note.

When unsure about what one is dealing with, promissory note or mortgage note, it is always best to consult with a professional.

15 Keys to Increasing the Value of the Mortgage Note

Although I have been in the business of buying mortgages for over 20 years, there are some questions that are more commonly asked than others. One of the most notable is, what are some of the essential keys to increasing the value of my mortgage note? In response to this question, I have compiled the following list that features 15 things that will assist you as the seller with doing just that.

1. You must have High Credit Score

2. Down payment at the time of closing must equal or exceed the present market equity in the property. This is because the amount of the payment will affect the actual value of the loan.

3. You must have a good payment history (past 12 months).

4. Your seasoning of the mortgage note is important. For instance, the more payments received since its origination will make the mortgage more valuable.

5. Certain geographical Location affects the value, makes it more or less saleable.

6. Appraisal value of the mortgage holder’s property.

7. Curb Appeal

8. Interest rates affects value. In general, the higher the rate the better.

9. Length of terms. Generally, if the person has lesser time to pay, they will receive more money in the sale.

10. Depending on the situation, balloon payments can affect the loan negatively. Which means, if the payer cannot meet the terms of the loan payment, it decrease its value instead of impacting it positively.

11. Good Record keeping. Person must keep good records of payments including deposits, cancelled checks of payments and the like.

12. Note amount. Typically, buyers are looking for an amount that ranges from $50,000 to $500,000.

13. Property Type. The type of property makes a significance difference. Buyers lean more toward single family and owner occupied dwellings.

14. Documentation Type. As new regulations take effect, the document type has become more important over time.

15. Seller must be willing to share relevant data with the seller. The value of the mortgage increases when the seller makes all relevant information readily available to the buyer so that they can make an informed decision (i.e. promissory note, payment records, settlement statements, old title policies, declaration page of home owners insurance, and anything else that can assist them with making a decision to buy).
With this being said, when you review this list, you may want to start by choosing at least 5 Factors That Can Make Your Mortgage Note More Valuable. By focusing on ensuring the first 5 factors meet these criterion, you can make sure that all 15 keys are strategically taken care of within a specified period of tim0

6 Things to Look for in Mortgage Note Buyers

When a seller of a property has chosen owner financing to supplement their income and avoid the traditional selling of property via banking institutions, sometimes they find it time to sell their mortgage note and receive cash in full. This is where note investors or note buyers will step in on the open market and buy your note from you, essentially taking over your future payments from buyers in return for giving you a lump sum of cash. This releases you as the owner financier and frees you from the property while cashing in on your asset.
Have you felt overwhelmed at the prospect of finding and selecting the right mortgage note buyer? It seems like there are so many willing to buy, but the myriad of options to choose from do not make it easy to choose the fairest and most experienced mortgage note buyers.
Below is a handy guide of 6 things to look for in mortgage note buyers. This will help you narrow down your search of potential note buyers and give you a better start, and more confidence, in selling your note at a price that is fair to you.

1. Experience in the Industry

When selling your mortgage note, you certainly do not want to start off with a new buyer/investor. There are a number of reasons for this. Some novice note buyers are posers who pretend to be investors, but they rarely, if ever, fund a deal themselves. This ends up in a chain of note brokers that can make it difficult to close the deal. Deal DIRECTLY with a note buyer, and not through those who put up a buyers’ façade in order to broker notes to other buyers.
This is why it is important to deal directly with a note buyer who has verifiable experience in the industry. Experienced note buyers understand the process, can answer your questions honestly and will provide a higher-quality service to you during the process.

2. Strong Reputation

A strong reputation is crucial to choosing a note buyer. While dozens of note buyers can be experienced in years, it is the quality of that experience with customers that dictates reputation. Independent testimonials, ratings, or references are all excellent ways of establishing a note buyer’s reputation in the note buying market. A trustworthy buyer can answer your questions honestly (rather than trying to fool you) and work professionally.

3. Response Time to Your Requests

When putting out feelers to different note buyers, take notice of how long it takes for them to respond to your requests for quotes or questions, and the quality of those responses. If a buyer is really a professional and cares about their customers, then they will get back with you quickly in order to get your business. A smart note buyer understands how fluid the market is and how quickly a note can be sold—if they do not respond quickly to your request, they are losing out on a fleeting opportunity to buy a note from you—if a buyer fails to recognize this, then they are not a very good buyer and not one you should work with. A good note buyer has dedication, is a quick responder for your business, and knows that most sellers are looking at multiple buyers and they will want to stand out from the crowd and impress you.

4. Individual Note Pricing

As stated before, it is important to observe potential note buyers and how they behave. Avoid the ones that do not care for you as a customer, because they simply want their money and are not likely to be the type of person to be honest, fair, or professional. A good note buyer will attend to your needs, as they know they have a reputation to keep and you may act as a reference or customer again in the future.
This means that giving you an individual and unique quote is an important part of separating the good eggs from the bad eggs. If a buyer sends you a generic number that they offer everyone as an umbrella price, then ditch them. If they do not have the time or dedication to take a look at your property information and give a quote that is unique to you and your property, then they do not have the time nor willingness to do further business with you regarding your asset.
If they cannot give you a personalized quote, then why on Earth would you give them your money?

5. Willing to Pay Fees Without Hidden Costs

Great note buyers with stellar reputations, professionalism, and a thriving business do not make it a habit of hiding hidden fees to their customers. This gives them a bad reputation, bad references, and makes them lose customers. A great note buyer will not need or wish to rip you off due to some hidden fees and costs. This is simply not worth blowing the deal to them, to hide a few bucks from you.
A company that is upfront with their fees and costs are the ones you want to use. The others that do not offer this information but claim to have a higher payout or cheaper cost, is likely hiding something from you. You do not want to get involved in that.
In fact, good note buyers will pay all of the fees involved themselves rather than charge you, with any normal note transaction. This helps you feel at ease, as you are without risk, and can focus on the main deal with the note buyer.

6. Investor Type

Institutional (National) Investor/Buyer or Private (Regional) Investor/Buyer is a question you must ask yourself when first seeking out a note buyer.
Institutional Buyers will purchase notes on a national scale and are often the “big boys” of the note buying industry with the ability and cash to write you a check at closing.
The other type of investor are the private or regional buyers. This type of buyer purchases notes on smaller scales, usually in their geographic region. It is more difficult to track down this type of buyer, but with the internet, a little bit of searching and researching can find you the best ones in your area.
But first, you must ascertain using the above tips, whether they are able and equipped to service a note, close the deal, and underwrite. Their capabilities and reputations must be researched by you for you to be completely comfortable with using this type of investor.

Conclusion

It is best at the end of the day, to begin your search using the tips above and always trust your gut and logic when it comes to trusting the people you will be working with. It will be up to you to decide which note buyer you will choose, and you will want to make sure that it is the best buyer for you.

5 Reasons to Consider Selling Your Note Now

Think about your past. Has everything gone as you planned that it would? Have there been twists and turns that have defined the ways that you think about things now?

In reality, life is very unpredictable, and so is the value of your mortgage note. Sadly enough, there are far more negative things that can affect the value of your property between now and the time when your mortgage balance is finally paid off. If you’ve been tempted to sell your note early, but were talked out of it for some reason, you’re in the right place.

We’ll show you 5 reasons to consider selling your note now to make the most out of your investment in consideration of your future:

1. Your balance now is the highest that your house will ever be valued.

While your note balance decreases, so does the cumulative pay price, and you’re typically better off getting the chunk of cash you want now, despite what lenders have probably told you. In reality, you’ll get the best quote on your property when your balance is higher, which is why it’s generally better to sell your note for cash now (with the remaining balance in tact rather than a whole note sell later on.

2. Inflation will inevitably make your home worth less over time.

The value of the dollar is going to go down- statistically. You should expect the value of your house to dwindle, even in the unlikely occurrence of some fantastic economic upturn (we think you’ll agree that it’s unlikely). Inflation is almost guaranteed as the Federal Reserve resorts to printing more money.

3. Sometimes it’s impossible to foresee financial difficulty and possibly defaulting.

Even if you’ve got a stable job, good credit history, pay history, healthy and saved money, there’s always a chance of circumstances (out of your control) that could drastically affect your ability to make timely payments, and if you default, it’s unlikely you’ll be able to sell when you want.

4. Your property could decrease in value, more than you’d think.

Trends have said that real estate is back on the upswing in late 2015, but the location and condition of your home affect the price more than anything else. Your note loan gives your home more selling power, because the bank has a set “price” for your home. As the property value decreases so does the loan-to-value ratings.

5. Changes to buying status and criteria could ruin your chances to sell.

Smart sellers never count their chickens before they hatch, because brokers are constantly changing criteria and making new deals. Sells today don’t necessarily equate to sells at a later date, especially in changing markets.

Don’t get caught in a loser’s market. Take our 5 reasons to consider selling your note now to heart; and make the smart decision to secure your financial future NOW and get the home that you really want.

Know when to sell your note

The old adage of knowing when to hold and knowing when to fold is even more true when it comes to selling your mortgage note. In fact, there are a huge number of perspective sellers who have no idea that they haven’t got to sell the total today, and we’re finding more and more advantages associated with holding/retaining part of your note.

When it comes to your mortgage note, sometimes it just doesn’t make sense to sell the whole thing, or it’s just not a viable, safe option. It’s important to realize that your home is your biggest investment, and as such, when you’re not able to sell your note at the price that you want, you’re set to lose a sizable chunk of money via your houses depreciation values. More often than not, because of the diminishing rates of return on homes, most buyers will only purchase full notes with large amounts of equity.

You’ll have your work cut out for you to determine how to best interest a potential buyer to determine the value of your home (through a loan to value ratio or LTV). This works by simply dividing what your note is worth by the value of the property. When you’re unsure, use your sales price as an estimate to get a ball park estimate.

Here’s an easy example of a loan to value ratio equation:

Your Property Value: $200,000/ Your Remaining Balance: $100,000 = LTV of 50%

When it comes down to a small number like the one above, you’ll have a great chance to sell the property. Most buyers will purchase a full when the LTV when the value is below 70% of the value. Most are looking for at least a 30% equity margin, proving that you’re invested in your home to use against the risk of foreclosure.

When it comes down to it, generally your mortgage notes fall well short of equity requirements, and therefore aren’t complete to sell. When you’ve got a particularly high LTV, your rate of return isn’t going to make you much money- which is when selling a partial is more important.

We’ve compiled a few Pros and Cons to help you make your decision:

Pros

  • More cash in your pocket, and freedom from your note requirements
  • No risk of default to the bank, giving you less management on your mortgage
  • Easiest transaction process imaginable

Cons

  • Bigger Discount on property value levels
  • You’ll lose property retention opportunities
  • Lost income, and the costs of lost interest
  • Sometimes you’ll face equity restrictions

While it might not make sense to sell your whole full mortgage, it often makes more sense to use a smaller amount of cash to pay off a big bill (i.e. taxes, car payments, deferments) when you don’t want to take all of the cash out of your note, or only want to retain enough of the income to get a little cash today.

Many sellers don’t need to sell the whole note, and understand that buying partials benefits them more in the long run, so many sellers will be interested your note when you’re selling a partial for a little extra pocket cash.

Talk to our trained specialists for more information. We’ll find you the best bang for your buck, no matter what your situation may be.

Note Buyers vs Note Brokers

Many believe that the terms “note buyer” and “note broker” are the same, and that either can be used to describe a company which buys mortgage notes in exchange for cash. However, there is a key difference which is important to understand, and it may seriously impact you if you do not.

Note brokers are like real estate brokers.It is their job to bring sellers and investors together by locating mortgage notes for sale and buyers. The broker acts as the middle man, dealing with the transaction between the investor and seller. Funding does not come from the broker. They have to find funding from either an investor or note buyer, which can increase the time it takes to sell your note.

However, despite this, there are benefits from using a broker. There are far more note brokers around than there are note buyer, so the chances are there will be one around locally.

So, what makes a note buyer different? Unlike brokers, note buyers are usually big companies that offer their services across America. A third party is not needed as buyers can get notes straight from the seller.

Take, for example, Nationwide Secured Capital. We can buy mortgage notes directly since we have our own funds. As you can imagine, there are multiple advantages of using a note buyer over a note broker.

One bonus is that transactions take place much quicker. The buyer doesn’t have to go looking for an investor to put up the funding. Another plus is the clear underwriting. Buyers will have particular guidelines which determine whether they can make a purchase and, with a note buyer, they are able to notify promptly whether they can or not.

Experience is important in this industry, and note buyers have plenty of it. You have to be a note broker before you can become a note broker, and Nationwide Secured Capitals 17+ years as a broker is invaluable experience.

As you can see, note buyers and note brokers have differences, and both have their benefits. Ultimately, you must make the decision about which you would rather use.

Contact us or click  below if you would like a note buyer to give you a quote on your note.

Sell Your Note Here

Do I Need an Appraisal before I sell my real estate note?

Note Holder often ask, do I need to know the value of my note before I Sell My Real Estate Note?

When you have decided to sell your mortgage note, there are a few things to expect. One of them is an inspection of some kind.Mortgage note buyers will want to know the condition of the property that the note is secured by. At the minimum, and depending on the note buyer, a Broker’s price opinion, or BPO, will take place.

What is the difference between inspections, appraisals, and BPO’s?

An inspection can range from a typically a general observation of the exterior of the property to a complete home inspection. The information from an inspection may include whether or not the property is occupied, if there is any apparent damage to the property and whether there is any obvious threat that could impact the value of the property. A general inspection can done by almost any person and can include a general “drive by” of the property.

A complete home inspection will include what a person walking through a house cannot see. This inspection will tell you if the foundation is cracked or if the A/C unit is about to die. Other items inspectors may note are termite damage, roof condition, electrical issues, plumbing issues, drainage, and flooring problems. These home inspections should be completed by licensed or certified inspectors

A BPO is performed by a real estate professional, not necessarily a broker. It can be an appraiser, a real estate agent, or a broker. It can be a “drive by” which will be the exterior of the property or can include the interior if the person has access. . BPO’s usually determine a general listing price when selling a home. A BPO can include the size, type, and age of the property. A complete BPO will have the characteristics of the neighborhood and some values of similar properties nearby.

An appraisal is more detailed than a BPO and often include statistics, analyzation of data, pictures, and other information related to the specific party. Appraisals will often include the interpretation of the information along with information from public records. Pictures of both the interior and exterior of the property will be taken. Notes about any architectural features, and necessary repairs will be used to support the valuation of the property. Appraisers are licensed or certified depending on the state. When the note buyer is ready to move forward with the purchase of the note, the seller will know what to expect when one of the above is requested.