10 Ways To Increase The Value Of Your Promissory Note

Down Payment Amount

More is better, 20% or more is ideal, Investors feel better when the homeowner has skin in the game.

Interest Rate

Do Not write a 0% Interest Rate Note; Investors need a good yield ( 8 – 15+%). They will discount the note more to achieve there yield goal.

Credit Score

The Payors Credit Score has a significant impact on what Investors are willing to pay, 620 is the standard minimum for most Investors.


Real Estate is considered the safest collateral, but many investors will consider other items.

Position of your Note

A note in First Position is considered more valuable than a junior lien.

Quality of Payor

Does the payor have a good payment history and stable income to support payments?

Terms of the Note

Long-Term Notes are bad (30 Years), short 1 to 5-year terms are ideal. Investors want their money back quickly.


Any underlying real estate should have clean Title and Title Insurance.


The Note Should be readily saleable as the Investor may want to sell quickly.


More collateral security adds value to the note.

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