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.
