Texas note FAQs.

Yes. Commercial pricing is driven by asset type, NOI/DSCR, sponsor strength, lease structure, and exit. Bid spreads are typically wider and underwriting is heavier.

Yes. Land notes trade actively, especially with strong down payments and clean recorded paper. Discounts are wider than residential but liquidity exists.

Yes. Texas Property Code Chapter 5 imposes strict requirements on contracts for deed, especially for residential property.

For most owner-occupied residential paper under Dodd-Frank and the SAFE Act, yes — through a licensed Residential Mortgage Loan Originator.

A wrap is a new note that wraps an existing senior loan; title passes. A contract for deed (executory contract) keeps title with the seller until conditions are met — Texas has specific rules for these.

Most Texas note sales close in 21 to 35 days, depending on title, payor verification, and document collection. Cleaner files close faster.

Eventually yes — the payor receives a goodbye letter with new payment instructions after funding. Nothing about their loan terms changes.

At minimum: the original note, recorded deed of trust or mortgage, settlement statement, payment ledger, and current insurance and tax records.

Generally as capital gain on the difference between basis and sale proceeds, with installment-sale rules in play if you originated the note. Talk to your CPA — every situation is different.

Our focus is Texas paper. We occasionally look at notes in adjacent states for portfolio reasons but Texas is the core market.

Collateral type and LTV, payor credit and pay history, seasoning, interest rate, remaining term, structure (balloon vs amortizing), and Texas-specific items like homestead and executory rules.

Buyers price for yield over the remaining life of the paper, plus risk of default, prepayment, and servicing. The discount is the difference between face value and present value at the buyer's required yield.