Full Purchase:

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You sell your entire interest in the note. This is the most traditional method of purchasing notes wherein all remaining amounts due under the note are assigned to the Bank and you receive one lump sum payment at closing.

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Partial Purchase:

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With a partial purchase transaction, the Bank purchases a specified number of future payments due to you.  The loan is transferred back to you upon receipt of the amounts due the Bank.

The partial purchase transaction has always been a popular method used by note sellers.  You may have a need for less cash than the amount realized by a sale of the entire note.  Therefore, the Bank can design a purchase of a specific number of payments that gets you the amount of cash you need now, with the potential for you to receive future payments as well.  Depending upon the circumstances, this is often the best way for you to tailor the note sale to meet your specific cash needs.

 

Installment Purchase:

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An installment purchase is a combination of two or more partials paid out over specified periods. This can provide you multiple lump sums of cash sooner rather than later. Many sellers enjoy the freedom of not having the burden of tax reporting, collections, accounting, insurance and more.

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Split-Payment Partial Purchase:

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A split-payment purchase is another variation of the partial purchase method.  If you are worried about losing all that monthly cash your note generates, this may be the way to go.  As in the other partial purchase methods, you sell a specified number of future payments due to you.  However, with the split-payment partial, the Bank purchases only a portion of the monthly payment you receive.  The amount you sell is up to you.  They could purchase half the payment, a fourth of the payment or two-thirds of each payment.  This would leave you a monthly income of the remaining portion of the payment you choose not to sell.  As with the other partial purchase methods, once the bank receives that to which it is entitled, the loan is reassigned to you.