Note Sales
When banks, credit unions, and other lending institutions provide funds to finance the purchase of a property, they create a note, which is essentially a legally binding agreement that codifies one party’s indebtedness to the other. However, lenders do not always retain possession of these notes. Sometimes they make them available for sale to investors when they’d prefer liquidity over a steady future income stream.
Disposing of non-performing notes is another reason why lenders may sell a note. Banks and other lending institutions often decide to dispose of the mortgage backing a commercial property rather than foreclosing on it. Selling a note has means that the financial institution can avoid additional costs, while investors have the opportunity to purchase either a performing or a non-performing mortgage, often at a discounted rate.
Connecting Buyers with Trusted Sellers
In addition to our numerous contacts, Millennium Properties offers a superior service to note buyers and sellers alike. For more than two decades, we have worked with investors and institutions of every size and in almost every sort of transaction. We’ve had and continue to have extensive involvement in real estate matters throughout the wider Chicagoland area. The three members of our executive team alone have conducted more than $5 billion in real estate transactions during their careers. When it comes to real estate in general and notes in particular, Millennium Properties has the knowledge to ensure success.
We aren’t the only ones who think so either. Our team has been recognized numerous times by industry organizations and publications such as Chicago Sun-Times, Crain’s Chicago Business, Commercial Forum and Midwest Real Estate News.
Frequently Asked Questions
What is a Real Estate Note?
A real estate note is a legally binding agreement between a borrower and a lender that outlines the terms of repayment for a loan secured by property. When you purchase a note, you're essentially buying the right to receive those future payments of principal and interest. Notes can be performing (the borrower is paying as agreed) or non-performing (the borrower is behind or in default).
At Millennium Properties, we help both buyers and sellers facilitate note sales Chicago wide. We understand how the market works and how all parties in a transaction can best benefit.
How Do I Buy a Real Estate Note?
Once we identify a note that matches your investment goals, our team will facilitate the due diligence, negotiate the terms, and coordinate the closing process. With our deep market knowledge and industry relationships, we simplify the transaction and ensure it's handled professionally from start to finish.
Are Real Estate Notes Vetted Before Sale?
Yes. At Millennium Properties, we work with reputable financial institutions, investors, and legal advisors to ensure all notes are thoroughly vetted. We evaluate the borrower's payment history, collateral value, lien position, and legal documentation to help buyers make informed investment decisions.
What are Common Fees Associated with Note Sales?
Common fees may include due diligence costs, legal review fees, servicing transfer fees, and in some cases, a buyer’s or seller’s commission. We provide transparency upfront and can guide both parties through all transactional costs so there are no surprises.
Can You Connect Me with Notes for Commercial Properties?
Absolutely. Our firm specializes in commercial real estate and has a long track record of connecting buyers with high-quality commercial notes, including office, retail, industrial, and mixed-use properties throughout the Chicagoland area and beyond.
Is There Post-Purchase Support for Note Sales?
Yes. Millennium Properties offers continued guidance after the sale if needed, especially for investors new to note ownership. Whether you require assistance with servicing arrangements, legal strategy, or asset resolution, our team is available to provide support and connections to trusted service providers.
Do You Handle Situations if the Note Becomes Non-Performing?
We can assist in evaluating non-performing notes both before and after purchase. If a note becomes non-performing, our experienced team can help you understand your legal options, connect you with attorneys or loan servicers, and guide you through possible resolution strategies, including workouts or foreclosure if necessary.