Here are 20 types of real estate-related notes:
- Promissory note: A written promise to pay a specific amount of money on a specific date, often used in real estate transactions.
- Deed of trust: A document that secures a loan with a property as collateral, often used in real estate transactions.
- Mortgage note: A written promise to repay a loan secured by a mortgage, commonly used in residential real estate transactions.
- Installment sale agreement: A contract that allows the buyer to purchase a property in installments, with the seller retaining ownership until the final payment is made.
- Land contract: A contract where the seller finances the purchase of a property, with the buyer making payments to the seller.
- Wraparound mortgage: A type of mortgage that allows a borrower to refinance their existing mortgage and combine it with additional financing.
- Balloon payment note: A note that requires a large payment at the end of the loan term, often used in real estate transactions.
- Lease purchase agreement: An agreement that allows a tenant to rent a property with the option to purchase it at a later date.
- Option agreement: An agreement that gives the buyer the option to purchase a property at a specified price within a certain timeframe.
- Reverse mortgage: A mortgage available to seniors that allows them to convert the equity in their home into cash.
- Participation note: A note that allows the lender to share in the profits of the property.
- Purchase money mortgage: A mortgage that is used to finance the purchase of a property.
- Commercial mortgage-backed security (CMBS): A security that is backed by a pool of commercial mortgages.
- Seller carry-back note: A note that allows the seller to finance the purchase of the property.
- Second mortgage note: A note that is secured by a second mortgage on a property.
- Junior lien note: A note that is subordinate to another lien on a property.
- Participation certificate: A certificate that represents ownership in a pool of mortgages.
- Collateralized mortgage obligation (CMO): A security that is backed by a pool of mortgages.
- Mortgage-backed security (MBS): A security that is backed by a pool of residential mortgages.
- Credit tenant lease note: A note that is secured by a long-term lease with a creditworthy tenant.
