A note is a written
document (promise to pay) with terms and conditions of
the obligation; which include the interest rate, dollar amount and length
of time. It is then signed and executed in the proper legal
format. A note can be secured or unsecured.
A business note is a document
secured by a business and personal property such as equipment,
furniture, inventory, goodwill, etc, that obligates one
individual or company to make periodic payments to another
individual or company. These receivables are created when a
business is sold. Generally, there is no real estate
involved in these types of transactions. The buyer gives the seller
a cash down payment and the balance is paid to the seller in
periodic monthly payments. The seller, therefore provides the financing to the
purchaser in the same way a bank normally would. This is called
seller-financing or owner financing and is a very common form
of financing on the sale of businesses with no real estate.
The payments a business seller will receive from these notes
are an asset and like any other asset can be sold for a lump
sum of cash.
There is a level
of risk associated with carrying a note. Your money is
guaranteed at the bank. However, if the payor stops paying on
the note, you will receive no interest and you may have to go
through the process of handling legal hassles associated with
default.
Absolutely, in fact this is very
common. It is referred to as a "partial purchase" and involves
selling only a certain number of the remaining payments on
your note. We can structure the purchase on any number of the
remaining payments in almost any manner. For example, let's
say you have a note with a balance of $100,000 payable in 240
monthly installments. If you needed just $30,000 now for
any reason, we would
calculate how many payments we would need to purchase to
provide you with that specific amount of cash. Precisely
which payments we purchase
depends on your personal financial situation.
Our goal is to get you the
specific amount of cash you need NOW while also addressing
your financial concerns of the future. A note is a remarkable
asset when you can intelligently sell your payments.
There is no cost
to get your note appraised with us. Please click
the link and
fill in the requested information. We'll have a buyer lined up
for your note within days.
That's where we
can help you. We have access to the funds you
need. We are not a bank and we do not make loans. We work with investors who are
interested in purchasing your note from you so you can have
the cash you need. This way you don't have to worry about late
payments or non-payments any longer.
Let's assume you
had a $60,000 real estate note with 120 months remaining that
you wanted to cash out and invest, and we quoted the cash
value of the note at $53,000. If you were to invest this lump
sum of $53,000 at today's stock market average of 10.00%, for
the remainder of the term of the note, the cash value could
increase to over 84,468.00
In addition, you
may be able to use a lump sum of cash to take advantage of an
exceptional investment opportunity that is available now, but
may not be available in the future, thereby possibly
increasing your return exponentially.
Transactions are typically
funded within four to six weeks from the time we receive
completed paperwork from you. Each client's circumstances are
unique so completion times may vary. We understand how
important your money is to you, and we work very hard to
expedite every transaction in a timely fashion.
What you have in your hand is
a debt instrument, a promise of payment over the remaining
term. One of the factors we consider is the risk involved, as
the payor could default or the payor could
pay the note off at any given time. If our investor
purchases your note for sale and the payor pays off next
month, the investor would only get the balance owing and would
lose money in this situation.
In addition to our private
network of investors; Banks, Insurance Companies, Pension Fund
Managers are the biggest investors in promissory notes because
they are considered to be fairly safe investments.
Additionally, there are thousands of individuals across the
country who invest in notes simply because they know their
yield before they even buy the note which is considered to be
a fairly safe investment.
The value of your note is
based on a number of factors -
Type of Real Estate or
Collateral Securing
the Note - Loan to Value Ratio - Down Payment - Interest Rate
- Length of Note - Payment Amount - Lien Position - Fair
Market Value - Payor's
Credit Rating - Verifiable Payment History - Balloon
Maturity (if any). There are many other
factors considered such as current market conditions,
remaining term to maturity, condition of the
property, residential/owner occupied versus non-owner
occupied, investor yield requirements, etc.
No, the sale of your note
will have no affect on the payor of the note. The terms of the
debt instrument (obligation) does not change. The borrower
(payor) will be given a new address to send his/her payments
to.
Of course! You should talk to
anyone you feel comfortable with . . . including your CPA, Tax
Advisor, Banker, or Attorney. Feel free to have them contact us
if they have any questions or concerns.
The first step is to
go to
link, please fill out the requested information for your
respective note. One of our representative will contact
you shortly with appraisal of your note and answer any
questions you may have.
Adavian Group Inc, has achieved
its market leading status due to our unique combination of
industry insight, methodology, efficient processes combined with
expertise, attention to detail, speed and analysis tools along
with other proprietary methods to create a unique service
experience. Because of these factors, we are able to provide
more cash to customers, on every structured settlement
transaction.
