Learn to Profit from Notes with Paper Assets Capital
Our educational materials are set up to help you better understand everything you need to know about buying and selling notes.
Can you explain what partials are?
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Partials are used often when an Investor needs to have cash immediately but does not want to sell his/her note. What happens is the note holder offers to sell a "piece" of the note or offers a specific number of payments on the note for sale. Once the payments have been made and the time runs out the note belongs to the note holder again.
A great example of this is as follows: You have a note that has 200 months of payments left to be made. However, you don’t really want to sell the entire note because you’d have to do so at a discount. Another purchaser would agree to purchase 50 payments from you and pay a specific price (giving you cash) for those payments. Once those payments are made, you would get the note back and there would be 150 remaining payments on the note. The upside of this is the balance would still be fairly high since the bulk of the 50 payments you sold were probably interest payments to begin with and the sold portion hasn’t impacted your principal very much. |
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