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    sold for a higher price.

    Discounts must be taken from the loan amount due to inflation and the time value of money. There may still be years left on the loan repayment, but the payments far in the future

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    When real estate note brokers purchase partially paid notes, they pay the note holder a discounted price after factoring in the time value of money, the payer history, and property condition.

    If  there is still a significant period of time left for the payer to make payments, the future payments are not worth the same amount in current dollars. Calculations are made to equate all the payments into current value, which is how the discount is determined.

    After purchasing notes at a discounted price, note brokers try to restructure the loan and increase its value. Increasing the value of the loan requires the payer to refinance or increase payments, which requires a new contract.

    Factoring the same concept of time value of money, we can understand how increasing payments now creates more value. The note can then be sold for a higher price.

    Discounts must be taken from the loan amount due to inflation and the time value of money. There may still be years left on the loan repayment, but the payments far in the future a

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    still a significant period of time left for the payer to make payments, the future payments are not worth the same amount in current dollars. Calculations are made to equate all the payments into current value, which is how the discount is determined.

    After purchasing notes at a discounted price, note brokers try to restructure the loan and increase its value. Increasing the value of the loan requires the payer to refinance or increase payments, which requires a new contract.

    Factoring the same concept of time value of money, we can understand how increasing payments now creates more value. The note can then be sold for a higher price.

    Discounts must be taken from the loan amount due to inflation and the time value of money. There may still be years left on the loan repayment, but the payments far in the future

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    which is how the discount is determined.

    After purchasing notes at a discounted price, note brokers try to restructure the loan and increase its value. Increasing the value of the loan requires the payer to refinance or increase payments, which requires a new contract.

    Factoring the same concept of time value of money, we can understand how increasing payments now creates more value. The note can then be sold for a higher price.

    Discounts must be taken from the loan amount due to inflation and the time value of money. There may still be years left on the loan repayment, but the payments far in the future

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    to refinance or increase payments, which requires a new contract.

    Factoring the same concept of time value of money, we can understand how increasing payments now creates more value. The note can then be sold for a higher price.

    Discounts must be taken from the loan amount due to inflation and the time value of money. There may still be years left on the loan repayment, but the payments far in the future

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    sold for a higher price.

    Discounts must be taken from the loan amount due to inflation and the time value of money. There may still be years left on the loan repayment, but the payments far in the future are not worth the same amount in dollars today.

    Calculations are made using special formulas to equate the future payment amounts into today's prices, making today's price discounted significantly.

    On the other side of the coin, notes that are well seasoned can fetch near remaining balance face value.

    Additional Major Reason Notes Are Discounted Although I am a broker myself, I put this site here because I want to bring you a clear understanding (from an insider's perspective) of the nuts and bolts mechanics of how the secondary market mortgage note industry works.

    A major reason many people are turned off from selling their real estate notes is because of the discount factor......but what you probably don't understand is that when you use a broker, like myself or any other broker anywhere, you pay addition

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