10 Things To Do With a Note

Most of us in our business who write about Notes typically talk about creating, maintaining or selling an owner carry promissory note. But, several years ago a man by the name of Lawrence Tepper, a note appraiser, wrote an interesting article about the different things a note holder could do with his note. He said "Promissory notes are valuable finance tools. Unfortunately, they are underused because they are not understood. They have many uses - here are 10 of them."

1. Hold the note for investment income
2. Hold the note in a tax-free or tax-deferred IRA account for income
3. Exchange the note for real estate
4. Sell the note for cash
5. Use the note as security for a loan
6. Use the note to repay a debt
7. Use the note to make a gift
8. Use the note to divide assets in a business or domestic settlement
9. Use the note as a down payment on real estate
10. Sell some of the note's monthly payments or some portion of a balloon payment

Source: Lawrence Tepper, Retired, April 19, 2016 in The Paper Source, published by W. J. Mencarow