What Made You Decide to Sell Your Performing Notes?

[Richard Dickson]

For those of you who have sold performing first position notes — what pushed you to finally let them go?

Was it better opportunities elsewhere, needing liquidity for another deal, or just time to rebalance the portfolio?

I’m curious because I’ve been seeing more people quietly moving notes recently. Wondering if this is a trend or just some individual shifts.

Would love to hear your experience — especially if you’ve recently sold or are considering selling. What kind of property types or borrower situations made the decision easier or harder?

[Jay Hinrichs]

people need cash all the time..  IE they need to buy a home for a kiddo.. they need to bail a kiddo out of jail and pay for lawyer.. They want to buy a second home . They just want liquidity. the borrower is bugging them .. many reasons but these above in my years of working with Note investors are some common ones.

PS I am talking about private folks who invest in mortgages with a broker or on their own.  Not a fund manager like the two that responded Their reasons would like they mentioned be of  a completely different nature.

With myself I generally hypothicate the note as opposed to our right selling it. And I do that with my commercial bank at bank rates FAR cheaper than trying to sell it to a professional note buyer or someone in the note bizz as I know what their return criteria is and we save a ton of the spread using our bank.