Expanding Your Investment Strategy

Buying and/or selling notes and deeds

How does the process of buying or selling notes and deeds work?

The process of purchasing and selling notes and deeds can vary based upon the specific type of note or deed being bought or sold, and the laws and regulations of the jurisdiction in which the transaction is taking place. However, there are some general steps that are common to many types of note and deed transactions.

• • Identify the type of note or deed you want to buy or sell
    There are many different types of notes and deeds, including mortgage notes, promissory notes, and deeds of trust, among others. Make sure you understand the terms of the note or deed you are interested in, as well as any relevant laws or regulations that may apply.

• • Find a buyer or seller
    Whether you’re buying or selling a note or deed, you may be able to find a seller through a broker, by advertising, or searching online marketplaces. 
    

• • Negotiate the terms of the sale
    This may include the price of the note or deed, any contingencies or conditions that must be met before the sale is completed, and any other terms that both parties agree upon.
    

• • Execute the sale
    Once the terms of the sale have been agreed upon, the parties will need to sign a contract or other legal document to complete the sale. This may include transferring ownership of the note or deed, as well as paying any fees or other costs associated with the transaction. 
    

• • Record the sale
    It’s imperative that you record the sale, which normally should be done in the County Recorder’s office. This makes the sale official and to protect the interests of both parties. More importantly, if there is a dispute or bankruptcy, the recording date generally sets the priority in which any debts are liquidated.