Would You Sell Your Note for a Lump Sum?

Question

For those currently holding mortgage or real estate notes, what would make you consider selling rather than continuing to collect monthly payments?

Would your decision be influenced more by the offer price, access to immediate capital, portfolio diversification, or simply wanting to move on from managing the note?

I'd be interested in hearing from other note holders about their experiences and what factors they considered before making a decision.

Jamie Bateman · Answer

• Among other reasons:
• 
• 1. Opportunity cost.
• 2. An investor in our fund has requested redemption of capital.
• 3. We bought it as an NPL and it is re-performing.

Among other reasons:

1. Opportunity cost.

2. An investor in our fund has requested redemption of capital.

3. We bought it as an NPL and it is re-performing.

Chris Seveney · Answer

We sell for many reasons

1. recapitalize to use funds for another deal

2. sell because the balance is below our threshold and managing a $300k note is same effort as $30k

3. it's in a state we don't want to do business

these are top reasons for us

Would You Sell Your Note for a Lump Sum?

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