Often is the case that a customer or potential customer will come to The Texas Note Company and have a note that they would like to sell and ask "How long will it take to close?" It is almost a trick question, what is boils down to is how well the note holder has kept the records that pertain to the note and the accounting practice that is in place to keep track of the payments. It really is as simple as that as to how fast a note sale can close.

The one thing to keep in mind though is if one of the note elements is off then that will have an impact as well. For instance if the payor's credit is sub-par, then the discount on the offer will e steeper because of risk to future payments. That may cause the note holder to contemplate on whether or not they accept the offer which can add to the time to closing.

The one item that I have experienced that can take some time that the broker or the note holder really have no control over is the time it take for the title to be cleared, either through a title abstract or a policy issues. I have been involved in note sales where it can take as little as two days and other where it take two weeks, because the title company was backed up.

Here is my checklist, which largely depends on the note holder providing me the data that I need to get the deal done.

• Copy of Promissory Note
  • Verify Note Seller Has ORIGINAL Promissory Note for Closing

• Copy of Deed of Trust
• Obtain Payor Social Security #
• Copy of Settlement Statement (HUD1)
• Copy of Warranty Deed
• Copy Of Property Insurance (Hazard Insurance)
• Copy of Title Insurance
• Verify Payment history (last 18 months)
• Obtain Payor Contact info
• Obtain Tax Status from County
• Obtain Tax Status from City
• Obtain HOA payment status
• Obtain Payoff Quote from 1st lien (If necessary)

I will tell you this, if you contacted The Texas Note Company and said Robert, I want to sell my note here is all the information you requested from the speed article we would be able to get you a quote and close the deal within about a week. That is fast in the note business.

The one Item I want to point out in the list above is the importance of the ORIGINAL Promissory Note. That is the GOLD in the paper work, The Texas T as we like to say here at The Texas Note Company.  Lose the Original Promissory Note and you have lost GOLD in the transaction.  It has happen several times when we have reached closing and the seller does not have the ORIGINAL Promissory Note only to kill the deal.  When an investor purchases a Promissory Note they want the Original, not a copy. It is a kin to purchasing a car except when you show up with cash in hand the seller has a color photograph of the car and tells you the car is in New Mexico. PLEASE put the ORIGINAL Promissory Note in a safe place that is accessible.

The only other thing I would need to do is contact the payor verify to their contact information and inform them where the next payment should e sent. The last question I would ask the payor is, “Is there anything else that I need to know?”. You be surprised with some of the answers I get from that question.

Really when you review the information above most all of it falls on the record keeping, the accounting and the ease with which the note holder can obtain the info.

Robert E Young, Founding Director of The Texas Note Company, graduated from Southwestern University in 1989 with a Bachelor Degree in Business Administration. He worked for several years at Citibank and Dell Computer. Robert now pursues his passion for helping people through traditional and innovative real estate transactions. Robert lives in Austin, Texas and has two beautiful daughters whom he loves spending time with. In the spring he can often be found in the dugout coaching his daughters kickball team the Porcupines. To learn more about Robert and The Texas Note Company visit us at TexasNoteCo.com