Note brokering

What is a note broker?

Updated 2026-10-19

A note broker is an intermediary who connects people who hold private notes, such as mortgage notes, land contracts or business notes, with investors who buy them. The broker gathers the note's details, shows it to buyers who fit, and helps the seller compare and close an offer. Brokers don't usually buy the note themselves.

Searching "note broker"? Some people use the phrase for car dealers who handle vehicle notes. This guide is about real estate and other private notes.

What a note broker does

Intake: collects the note's terms, payment history, and property or collateral details.
Packaging: organizes the documents so buyers can review them quickly.
Matching: shows the note to buyers whose criteria fit (lien position, property type, state, size).
Comparing: helps the seller weigh offers on price, timing and conditions.
Closing support: coordinates the paperwork with the buyer, the title company or the attorney.

Why a seller might use one

Access to more than one buyer, instead of a single take-it-or-leave-it offer.
Help understanding what drives the price, and what's fixable before you sell.
Less time spent finding and vetting buyers yourself.

How note brokers are paid

Usually through a fee or a spread built into the transaction. See how note brokers get paid for the common arrangements and the questions to ask.

Questions to ask any note broker

How are you paid, and by whom? Will that appear on the closing statement?
Will my note go to more than one buyer?
Is the offer you show me firm, or subject to due diligence?
What information do you need now, and what can wait?
Do you hold any license that applies in my state?

Licensing

Whether a note broker needs a license depends on the state and on what the broker actually does. For example, arranging new residential loans is generally regulated, and some states regulate the brokering of existing notes. If this matters to you, ask the broker and check with your state's regulator or an attorney.

Questions

Is a note broker the same as a mortgage broker?

No. A mortgage broker helps borrowers get new loans. A note broker helps holders sell existing notes to investors.

Do I have to use a broker to sell my note?

No. You can contact buyers directly. A broker can help you reach more buyers and compare offers. See broker vs. direct buyer.

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Educational information only, not legal, tax or investment advice. Laws and practices vary by state and situation, so talk to a qualified professional about yours. CashForMyNote.com does not buy notes. Affiliate disclosure.