I use AI a lot.
It has become a regular part of how I research, organize ideas, compare information, and answer questions faster. I like it, and I think it is changing many industries for the better. The note business is no exception.
Today, a note seller can ask AI about note values, seller financing, discounts, partial purchases, amortization, credit, property equity, and just about anything else related to selling a note.
That is a big improvement over the old days, when most note sellers didn’t even know what questions to ask.
Using AI as a Note Investor
Using AI (or the Internet in general) is a great place to get an overview of what it takes to sell your note.
But there is a catch.
More Information Does Not Always Mean Better Information
AI is useful, but it is not always right. In fact, I tend to think it’s about 80% correct. That is not a scientific number. It is just a guess.
For research, 80% can be very useful for note sellers. AI can explain terminology, show you how calculations work, compare options, and help you ask better questions. The problem is that it can also give you bad information with a lot of confidence.
And there is already plenty of bad information online.
AI has not reviewed your note documents. It has not looked at the property. It hasn’t verified the payment history, pulled the payer’s credit, or talked with actual note buyers about what they are paying today.
That is where real (human) people still matter.
Nothing Replaces an Experienced Note Buyer
A good note investor should walk you through the process.
They should explain what affects your note’s value, what options are available, what documents are needed, and what happens during due diligence.
They should also be willing to answer questions.
The Internet can explain how selling a note works. An experienced note buyer can review your situation and help you decide what makes sense.
If you are thinking about selling a note, I encourage you to use AI and the Internet first. Research the terminology. Ask about partial purchases. Ask what affects note value. Learn enough to ask better questions when you talk with a buyer.
Just do not confuse research with an actual evaluation.
And one important point: you should never have to pay someone just to find out what your note may be worth. At NoteInvestor.com, we offer a free note evaluation with no obligation.
There Is More Than One Way to Sell a Note
Selling a note does not always mean selling every remaining payment.
You may be able to sell the entire note, sell part of it, sell a certain number of future payments, or structure the sale around the amount of cash you need.
For example, if you are receiving $1,500 a month but only need $40,000 today, you may not need to sell the whole note. A partial sale could give you the cash you need while allowing you to keep some future payments.
This is another area where talking with someone who understands note transactions matters. AI can explain what a partial purchase is. A note professional can help you decide whether one makes sense.
So, Has AI Changed Note Investing?
Absolutely. It has changed how quickly we can research, how easily sellers can educate themselves, and how investors can analyze information and learn new concepts. I think that is a good thing, and I use AI regularly.
I do not confuse AI with experience. Use it to research, learn, and ask better questions. Then, when you are dealing with an actual note and actual money, make sure an experienced person is on the other side of the conversation.
Where to Next?
If you are thinking about selling a note, start with a free note evaluation. If you are interested in buying notes, check out our free Discovering Notes MiniCourse. Or reach out with any questions!
Solid analysis Fred, thanks