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Commercial mortgage notes are generated by seller financing and predicated upon real estate properties that are used for business purposes. Like other types of notes, a portion or all of the income stream from these notes can be sold for a lump sum of cash.
The cash that is gained from either a partial or complete sale of the note allows the seller of the property to have immediate access to the principal paid into the real estate plus the equity that has built up over the years of ownership. This is in spite of the fact that seller financing was required in order to sell the property.
If a potential purchaser of commercial real estate has a difficult time securing a mortgage through conventional lenders, the seller of the real estate can take back a note on the property and then sell a series of note payments or the entire note to a funding source for a lump sum of cash.
The sale of commercial mortgage notes is available also to an investor who has purchased a mortgage note and is now holding this type of instrument.
Capital Funding can work out the arrangements and details for the seller so that the seller can get a lump sum of cash now without needing to have a long term relationship with the purchaser because of seller financing.
Keep in mind that the notes are purchased by the funding source at a discount in order to get a required yield. Also be aware that discounted value of the money received from the sale of a private commercial mortgage is worth much more now than it will be in the future.
Call Capital Funding of
America for more details on how to structure this type of sale. For more
information, please call 1-800-322-5985 or use this link to our CONTACT
US page.
