Note Brokering and Investing in Promissory Notes


Note Brokering

What is Note Brokering?

Simply put note brokering is finding someone who is carrying some form of promissory note and finding a note buyer or note investor who want to purchase the note. You get paid a commission or a spread from negotiating with the note seller and selling to a note buyer.

What Types of Notes Can Be Brokered

​The most common for of note that is brokered are real estate notes and business notes but there lots of other forms of promissory note that can be brokered you just have to find a willing seller and buyer.

​Mobile Home Notes can be brokered and are very popular as the often have very high yields. Mobile home promissory notes with land have more value generally but many investor buy simple mobile home notes without land. Mobile home note are very popular with self directed IRA investors as they are usually fairly small note which are ideal for self directed Roth IRA accounts.

​Business Notes are another common form of note that is highly desirable to note investors. A great place to locate business notes is to talk with business brokers, over 60% of all small businesses are sold with some for of seller carry back financing that produces a note. Business notes that also have some form of real estate attached to them are less likely to be discounted heavily.

Legal action notes are often brokered,some of the large class actions awards can be very significant and can be brokered to the right note buyer.