How much is my owner financed note worth?
Note Appraisal
Why does a note need to be appraised?
How can I determine the actual value of an owner financed note?
A professional note appraisal will provide an accurate assessment of the owner financed note’s value and potential salability.
Some common reasons for an appraisal include:
Estate Planning
Annual Valuation for pension/profit-sharing plans
Fair Market Valuation for IRS and tax purposes
Legal Valuation for settlement, probate, judgment or liens
In order to determine the value of the note, the appraisal must consider:
Priority of the debt
Value of the collateral (if any)
Credit of payor
Payment history of payor
Equity in property
Type of property
Property location
Note terms
At the end of the day, a note holder will want their note to be worth as little as permissible for tax purposes, but worth as much as possible for spending purposes.
