Promissory notes are a great opportunity for many people and for many different reasons. Using a promissory note to sell your property allows you to maximize your return over time so as a seller it is a great investment tool or perhaps just a good tool to help you close a sale. The promissory note details the terms of the sale including the payment amount, interest rate and term of the payment. These are the important details that keep both buyer and seller safe and also spells out the obligation of the sale.

Promissory notes can be great investments to hold on to because they can offer a future cashflow. Many people like this cashflow and will hold on to the note for that purpose. Similar to rent being paid it offers that investment income on a monthly basis.
Others are not interested in holding the note long term but use it only as a means to an end to help sell a property they are trying to sell. For those who desire to sell the note there are opportunities to do so. It is best to receive some payments first to create some seasoning on the loan.  This seasoning makes the note more valuable to a buyer or broker who will purchase the note.

There are many templates and standard forms available on the net for promissory notes to help create this legal contract. You can modify the details to fit your circumstances and make sure the note meets your needs. There are some basic terms that must be present on any  promissory note created. These include the following.
  • Name of seller (Lender)
  • Name of buyer (Borrower)
  • Amount owed
  • Payment amount
  • Interest rate
  • Term of contract (number of payments)
The other details of the note can be adjusted to fit the needs of the bjyer and seller and are generally going to be pretty general or similar to the basic outline offered on eny promissory note template or form.

One of the things that you need to always think about with the cash flow notes business is the need to be creative. Even more than that is to be creative in solving the problems of others. You will close more deals if you work hard to find, recognize and resolve the note holder’s problem. If you are only thinking about making a buck then you have already lost the deal most of the time. This is a hard concept for many to truly accept, after all you are in business to make money right? This is true but like anything in life, your success is more related to how you treat others than you might think.


Those who succeed are usually the ones willing to think about how to best serve others. Your service or product will be better if you strive to make certain your customer is taken care of. In the cash flow notes business this means you need to find out where the mortgage note holder’s pain is.

  • Why are they thinking about selling?
  • How much do they need to solve their pain?
  • Can they resolve their problem with a partial sale?
  • How can you help them get what they want?

Sometimes getting an understanding of what the note holder needs is as simple as asking them why they want to sell. Other times you might need to be a little more covert in your questioning. Sometimes people are private and don’t want to share with you their “pain”. They don’t realize that knowing this will help you resolve their situation and find you a solution. You might just try telling them with a comment like this: “John, I can help you best if I understand why you need the money. Sometimes you can get what you need without losing the entire investment you know is so valuable. Can you give me a bit of clarification of why you are selling?”

This kind of questioning may help you to ease the “need” out of the mortgage note holder and that will give you the power you need to begin working on a solution for them. Most of all, be sure that the note holder knows you are interested in finding the perfect solution for them.

Most who start in the cashflow notes business only think of a note deal in black and white terms. You either sell, buy or broker the note or you don’t. Either the noteholder is ready to sell or they are not. What you lose when you think in this way however is a lot of opportunity. You are leaving money on the table that should be put in your pocket. Perhaps the note holder is unrealistic in their desires. Maybe they expect 100% of the remaining balance left on their note or perhaps they just don’t need the total sum that would come from the sale and so they are not interested in losing the entire investment.


What you and the noteholder are missing is that there are countless ways to sell a note and they do not all require that the seller relinquish everything. Not only that but all sales do not need to transfer all payments or notes to the buying investor. I plan on giving just some basic ideas here to help you recognize what can be done with notes to close more deals and to make more money. One of the biggest benefits to thinking this creatively is that you can easily become a note investor yourself without investing any money. Now I’m sure that some of you are interested in that. Before I get into some examples (more details will come later) let me just say this: Your ability to make more deals using these techniques requires a bit of creative thinking. Creative thinking requires a positive attitude. A positive attitude is more than you think it is. I’ll write more about what a true positive attitude is in another post but let’s discuss some of the creative ideas that essential can be referred to as “partial” note purchases.


  1. If the seller have a $100000 note but only needs $25000 you can ask an investor to bid on the number of payments they need for $26000 (leaving you room for a profit)
  2. If seller has 29 years of payments remaining ask investor to bid on 20 and then negotiate with them for you to keep the last 9 years of payments
  3. If seller requires the payments to live on right now, ask an investor for an offer on the latter payments of the note
  4. if seller expects full price for the note, ask for an offer that buys some payments now, some later and perhaps leaving some for the seller at the end with all purchases and later payments totaling the total of the note
  5. offer to buy only the next 2-20 years of payments leaving the latter payments for the seller, they will often want to sell the rest of the payments at a later date
  6. If you find a portfolio of notes negotiate a purchase for 39 of 40 notes and keep one note as part of your commission

There really is no limit to how a note purchase can be structured other than your own creativity. that is why your attitude and willingness to be a creative thinker can make you more successful.

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