During our thirty-plus years of experience at American Equity Funding, we have had an abundance of inquiries about our services. Here are the four most frequently asked questions:

1. How much of a discount can I expect?

The discount amount depends on several key factors.  These include, but are not limited to, the borrower’s credit, interest rate, type of property, size, term of the loan, number of payments made, and consistency of monthly payments.

Another critical component for a discount is the loan-to-value ratio (LTV).  This is figured by taking the current loan balance and dividing it by the property’s appraised value.  Thus, if a loan balance is $48,258.00 and the appraised value of the property is $75,000, divide the loan balance by the appraised value and multiply by 100 to get the LTV.  In this case, the LTV is 64%.  This means that the remaining 36% is the note equity.  A lower LTV can help increase the quote of our buyers.

The process for selling a note is similar to selling an automobile!  For instance, the buyer would question the make, model, mileage, history, condition, etc., and these factors would all be considered in the purchase price. Also, once the information you need is gathered on a note, American Equity Funding will be able to provide an accurate quote.  Unless an unexpected situation arises during underwriting, we pay the same percentage as the original quote.

A note can either be sold entirely or as a partial payment purchase (a portion of the payments sold).  Therefore, a note with the following terms could be sold either way.

Sell price: $120,000.00
Down payment: $30,000.00
Total Owner Finance: $90,000.00
Duration: 180 months (15 years)
Interest: 8%
Payment: $860.00/month

This note could probably be sold in its entirety for 85% to 95% depending on the borrower’s credit rating and pay history.

The option of a partial payment purchase could also be made on this same note. This method is often chosen when the seller doesn’t need a large sum of cash. Income is received when the payments purchased have been fulfilled and again from the payments when the note returns in 120 months. American Equity Funding offers to purchase 120 months of payments and upon a positive return, may further offer to purchase more payments or even the entire remaining amount due. A partial payment purchase can be beneficial in selling high risk notes.

Amount of payments sold: 120 months (10 years)

Income: At least $60,000.00 now plus more from the payments when the note returns in 120 months

Return note: 60 payments remaining after 120 months

Balance: $42, 418.00

This equates to immediate cash and the balance of the loan back, combining to more than the current balance. This option is not for those wishing to be completely out of a note.

2. How long will it take American Equity to fund my note purchase?

American Equity Funding earnestly strives to fund note purchases within two to four weeks from the time that all required documents and agreements are in place. An exact time frame is not guaranteed, however, as unknown issues may be found during our due diligence. Also keep in mind that non-interested third-party vendors are used to provide information which may also delay funding.

Different circumstances can arise when a deed or release was not done properly, or at all, by a former owner or mortgagor and the property title is unclear. This requires some detective work on our part to decipher who needs to sign, whether it is a company no longer in business or heirs for an individual who has died and cannot execute the needed documents. We have had to do both which took much longer to close.

An example of this is a specific loan which took us what felt like forever to close. A client wanted to sell the note that she and her husband had created. Unfortunately, he passed away before getting a quote from us and she did not become his sole heir in their state. This required us to locate their children as well as children from a previous marriage to sign off on the sale. During our investigation, we found out that two of the children had passed away which resulted in us having to find their children. In the end, more than ten signatures were required in order for her to sell the note.

Despite these kinds of challenges, American Equity Funding takes pride in the fact that we care about our clients and take the time to go above and beyond what is expected to fund a note!

3. Do I pay closing costs?

American Equity Funding pays all closing costs associated with the purchase of a note. This means that the quoted price will be the same percentage amount funded. Deductions might include delinquent taxes or underlying loans to be paid off on behalf of the seller.

For instance:

Note: $75,000.00
Quote: 85% = $63, 750.00
Deductions: $1,080.00
Total funded: $62, 670.00

If two loan payments were made in the interim following the 85% offered to purchase the note, we would still pay 85% of the current loan balance at closing time. Other fees we also cover are title insurance, broker price opinion (BPO), recording fees, closing notaries, credit checks, and other risk assessments.

Should any discrepancies arise, we immediately make contact, stop underwriting, and work together to resolve the issue(s) and close the transaction!

4. Am I required to attend closing if the note I own is in another state?

We aim to make selling notes as easy as possible and no, it is not necessary to travel to another state!  Closing can be done through a title company nearby or by mail. We also have the ability to utilize mobile notary publics to assist with signing the transfer documents. The mobile notary will come to an individual’s home or another designated location.


Selling a note can be a seemingly overwhelming task! Our goal at American Equity Funding is to utilize every opportunity to assist each client through the process and have a positive experience.

Once our note buyers have the necessary facts and figures, they will always respond as soon as possible.

We are very hands-on and love speaking with everyone who calls our office! During regular business hours, all calls are answered by one of our professional and knowledgeable staff members, and never an automated response. We are also delighted to have a Spanish translator on board. E-mail and many other technological opportunities are available to accommodate preferred and effective communication for our awesome client.  Throughout 38 years and 10,000 transactions under our belt, American Equity Funding has experience in almost every aspect of the note business. This includes real estate, which is the first cousin to our line of work. We have many happy and satisfied customers willing to speak to others should anyone wish to do so.

Please feel free to call me personally at 1-800-874-2389. If I am not available, I will respond quickly.

Steve Whitlock

American Equity Funding, Inc.

For more information you can call us at (800) 874-2389 or fill out this short form and we will reach out to you.