What Are Promissory Notes?
They are documented promises of one person to pay a debt owed to another person. This written document not only states a payment commitment, but the terms of the agreement are spelled out including the length of time allowed to pay the debt, interest rate, and the amount of the note. Look at this sample document. This is very important. The actual creation of the “note” is to be done by the appropriate real estate professional. Depending on your physical location, this is part of the documentation that is prepared by a Title company or Real Estate attorney. How Can These Notes Help Me? Mortgage notes are a major component of every transaction involving the purchase and sale of real property. The effective creation of these notes puts you in financial control of your transaction by laying the negotiable foundation of the sale. It is the sale of these “cash-flows”, or debt instruments, that create the cash you need to fund your buyer and get your CASH at closing or some time in the futur
