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.

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