what is a "note" (in finances/real estate)?

A note is simply an I.O.U. If I loan you $1 and you sign a piece of paper stating that you will repay me the $1, then that is a note. When a property is sold using owner financing, a real estate note is created. In that note, the amount to be paid is listed along with the interest rate, term of the note, amount of payments, what happens in case of default, etc. A real estate note is generally drawn up by an attorney, as it needs to have all contingencies covered.

Companies like ours buy real estate notes to collect the monthly payments. People sell their notes to pay off debts, settle their estates, make other investments, because they would rather have a lump sum of cash now instead of waiting for payments, etc. For more information, visit www.seascapecapital.com.