What Are Commercial Notes?
Commercial notes are a type of promissory note backed by commercial real estate. They are commonly used in owner-financed transactions, where the property seller provides financing to the buyer. This setup allows the seller to receive consistent payments, while the buyer can acquire the property without traditional financing. Liberty Note Investing focuses on commercial notes backed by diverse property types, including office buildings, multi-unit apartments, and mixed-use properties.
Types of Commercial Notes:
- Office Building Notes
- Apartment Building Notes (5+ units)
- Retail Property Notes
- Industrial Property Notes
- Mixed-Use Property Notes (e.g., retail space with apartments)
How Liberty Note Investing Purchases Commercial Notes:
Liberty Note Investing evaluates commercial notes differently than residential ones, considering factors like company occupancy, property zoning, and environmental considerations. They price notes based on criteria such as:
- Down payment and property equity
- Payment history and payer’s creditworthiness
- Property location, condition, and occupancy
Benefits of Selling to a Commercial Note Buyer:
Selling a commercial note can provide quick access to funds for new investments, debt reduction, or estate settlement. Sellers can opt for a full or partial sale, selling only a portion of the payments if immediate cash needs are moderate.
Liberty Note Investing offers a streamlined note sale process, typically completed within 3-5 weeks. After an appraisal and title commitment, closing documents are signed, and funds are promptly wired to the seller.