Multiple deeds, multiple contracts, one note

3 Replies

Hey BP, need some guidance

We are currently in negotiations on an 11 property portfolio (have been for over a month and a half). 

 Purchase price: $625,000

Owner financing: $385,000 (3-year balloon)

Private investor providing remaining: $240,000 (5-year balloon)

 All terms are agreed upon except for one caveat: my investors are asking for the purchase to be 11 different notes and the seller is only wanting it to be one note. We already agreed upon 11 different contracts and 11 different deeds. 

My question is: what are the pros and cons on 1 note versus 11 notes, and is there a good solution to satisfy both parties? My investors would like 11 for protection (in the event of default - as well, it would help in case I would like to sell an individual property). I know it would cost me more money at closing, but shouldn’t affect the seller, correct?

Is there a downside for the seller if it is 11 notes?

Trying to come to an agreement - I believe this is a deal breaker for my investors if it does not happen, so interested in hearing any thoughts/advice.


I would sell the seller on the advantages of having 11 notes. The main one that comes to mind is that if he needs some quick cash, he can sell one or two notes to an individual or an institution. The paper is worth cash if needed. This also allows you to pay off or sell individual properties for a quick profit instead of having them all linked. You could also tell him that from a tax perspective, individual notes lock down your cost basis for each property.

@Anthony Dooley Thanks Anthony, makes a lot of sense. Was thinking much the same.  Is there any downside for a seller if there were multiple notes? 

@Kyle Collette maybe book keeping will be more cumbersome. They should use a third party note service company to handle the accounting and billing, so then there wouldn't be a downside in my opinion.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here