For Note Sellers: When Does It Actually Make Sense to Cash Out a Performing Note?

[Frances Cammack]

Hey BP community,

I’m talking with more and more owners of seasoned, performing 1st position residential notes who are wondering if now is the right time to sell the note instead of holding for long‑term cash flow.

I’d love to hear from both sides of the table.

For those who have sold a performing note recently:

• What made you finally decide to cash out instead of keep collecting payments?
• How did pricing/discounts compare with what you expected going in?
• Anything you wish you had done differently in terms of structure, timing, or who you sold to?

For buyers of performing notes:

• What does an ideal deal look like for you right now (LTV, rate, seasoning, borrower profile)?
• What are the biggest red flags that make you pass, even if the yield looks good on paper?
• Are you mostly buying to hold for income, or do you resell/partial out?

Personally, I’m focused on 1st lien, 12+ month seasoned, clean‑paying residential notes and I’m trying to help potential sellers think through whether selling is actually in their best interest or if they’re better off holding.

Would really appreciate any real‑world feedback, recent experiences, or lessons learned from others doing these deals in today’s environment.

[Chad U.]

Quote from @Jamie Bateman:

This is basically the same post as last week's, right? 

https://www.biggerpockets.com/forums/70/topics/1279867-shoul...

Same AI slop questions week after week