How to Sell Your Land Note at Closing: Complete Guide to Simultaneous Close Transactions
- Eric Scharaga
- Oct 22
- 10 min read
Updated: Nov 24
By Eric Scharaga | Updated November 2024 | 13 min read
Here's the problem every land investor faces:
Cash buyers want discounts. They know you need liquidity, so they lowball you.
Seller financing attracts more buyers at higher prices. But then your capital is tied up for 5-10 years collecting monthly payments.
What if you could have both? Sell with seller financing BUT get paid in cash at closing?
You can. It's called selling your land note at closing (also known as a simultaneous close), and it's one of the most powerful strategies in land investing.
I'm going to show you exactly how this works, the complete step-by-step process, all the paperwork involved, and how we handle everything so you can focus on finding deals instead of managing financing.
What is Selling a Land Note at Closing?
Simple definition: You sell your property with seller financing to attract buyers and command higher prices. But instead of collecting payments for years, a note buyer (like Damen Capital) purchases the note at closing and pays you cash.
The magic: The buyer gets financing. You get cash. Everyone wins.
Here's the structure:
Traditional Cash Sale:
You sell land for $80,000
Buyer needs $80,000 cash
Small buyer pool (cash-only buyers)
Buyers demand discount for cash
You net $80,000 after waiting for cash buyer
Traditional Seller Financing:
You sell land for $100,000
Buyer pays $10,000 down
You finance $90,000 over 10 years
You collect $1,187/month
Larger buyer pool
Higher price
But you wait 10 years to get paid
You take default risk
Selling Note at Closing (Best of Both):
You sell land for $100,000
Buyer pays $10,000 down
You "finance" $90,000 (on paper)
We buy the $90,000 note at closing for $65,000
You receive: $10,000 down + $65,000 = $75,000 cash at closing
Buyer gets financing
You get cash
We collect payments
Result: You netted $75,000 cash (nearly the same as an $80,000 cash sale) BUT you sold faster and to a bigger buyer pool because you offered financing.
Why This Strategy is Powerful
Advantage #1: Attract 10X More Buyers
Most land buyers can't get bank financing for vacant land. By offering seller financing, you open your property to:
Buyers with cash flow but not full capital
Buyers building over time
Buyers banks won't finance
Out-of-state buyers
First-time land buyers
Result: Properties sell 3-5X faster.
Advantage #2: Command Higher Prices
When you offer financing, buyers pay a premium:
Typical premium: 10-25% above cash price
Financing convenience has value
Buyers focused on monthly payment, not total price
Example:
Cash sale: $70,000
With seller financing: $90,000
Even after selling note at 70% ($63,000), you net more
Advantage #3: Get Cash Now, Not Later
You need capital for:
Next acquisitions
Marketing
Operations
Scaling your business
Selling the note at closing gives you immediate liquidity to redeploy.
Advantage #4: Eliminate All Risk
No default risk (we take it)
No collection hassles
No foreclosure possibility
No payment tracking
No buyer relationship management
You're completely out—clean and simple.
Advantage #5: Compete Against Cash Buyers
Other investors offering cash-only can't compete with your financing terms. You'll win more deals because sellers prefer your financed buyer over cash buyers demanding discounts.
The Complete Process: How Selling at Closing Works
Let me walk you through the entire transaction, step by step:
Phase 1: Before Marketing (Pre-Approval)
Step 1: Contact Note Buyer
Before you even list your property, contact us:
Provide property details
Estimate sale price
Get pre-approval for note purchase
What we need:
Property address and description
Expected sale price
Proposed financing terms
Property condition and access
Timeline: 24-48 hours to pre-approval
Step 2: Get Terms Quote
We provide:
Maximum note purchase amount
Acceptable financing terms
What we'll pay as percentage of note
Any special requirements
Example quote:
Property selling for: $100,000
Down payment: 10% ($10,000)
Note amount: $90,000
Interest rate: 10%
Term: 10 years
Our purchase price: 70% = $63,000
Your net at closing: $73,000
Step 3: Structure Your Sale
Now you know:
What terms to offer buyers
What you'll net at closing
That funding is guaranteed
You can market with confidence.
Phase 2: Marketing Your Property
Step 4: Advertise with Financing
Your marketing emphasizes:
"Seller Financing Available"
"10% Down, Easy Terms"
"$1,000/month payment"
"No Bank Qualifying"
Example ad: "20 Acres with Seller Financing! $100,000 sale price $10,000 down $90,000 financed at 10% for 10 years $1,187/month Call today!"
Result: Phone rings off the hook. Multiple interested buyers.
Step 5: Negotiate with Buyers
Buyers love the financing:
Lower barrier to entry
Easier than bank loans
Fast closing possible
You negotiate from strength because you have options.
Phase 3: Under Contract
Step 6: Execute Purchase Agreement
Your contract includes:
Purchase price: $100,000
Down payment: $10,000
Seller financing: $90,000 at 10% for 10 years
Standard land purchase terms
Important clause to include: "Seller reserves right to assign promissory note and deed of trust to third party at or after closing."
This allows you to sell the note.
Step 7: Notify Note Buyer
Send us:
Executed purchase contract
Buyer information
Closing date
We confirm:
We'll purchase the note at closing
Amount we'll pay ($63,000 in example)
Documents we'll need
Timeline: We respond same day
Step 8: Order Title Work
Title company orders:
Title search
Title commitment
Survey (if needed)
Note buyer (us) typically pays for:
Title insurance (lender's policy)
Recording fees for deed of trust
Seller pays for:
Owner's title policy
Standard closing costs
Phase 4: Closing Preparation
Step 9: Document Preparation
The title company prepares:
For the Property Sale:
Warranty deed (seller to buyer)
Settlement statement (HUD-1 or ALTA)
Property disclosures
Any state-required documents
For the Seller Financing:
Promissory note ($90,000 note from buyer to seller)
Deed of trust or mortgage (securing the note with property)
Truth in Lending disclosure (if required)
Payment schedule
For the Note Sale:
Assignment of note (seller assigns note to us)
Assignment of deed of trust (assigns security interest to us)
Servicing agreement (we handle collections)
Settlement statement for note purchase
We provide you templates for all seller financing documents.
Step 10: Title Company Coordination
We work directly with title company:
Confirm all documents are correct
Provide wiring instructions for our payment
Coordinate signing appointments
Handle any title issues
You don't have to manage any of this. We communicate directly with title company.
Step 11: Final Approval
3-5 days before closing, we:
Review final title commitment
Confirm property condition unchanged
Approve final settlement statement
Commit funding
Phase 5: Closing Day
Step 12: Simultaneous Close Transaction
Here's exactly what happens at closing:
Transaction 1: Property Sale (Buyer to Seller)
Buyer brings $10,000 down payment
Buyer signs promissory note for $90,000
Buyer signs deed of trust
Seller signs warranty deed
Buyer now owns property (subject to lien)
Transaction 2: Note Sale (Seller to Note Buyer)
Seller assigns $90,000 note to note buyer (us)
Seller assigns deed of trust to note buyer (us)
Note buyer (us) pays seller $63,000
Note buyer now holds the note and lien
Money Flow at Closing:
Buyer pays: $10,000 (to seller via title company)
Note buyer pays: $63,000 (to seller via title company)
Seller receives: $73,000 total (minus closing costs)
Net to seller: ~$72,400 (after typical $600 in closing costs)
Documents Recorded:
Warranty deed (seller to buyer)
Deed of trust (buyer to note buyer)
Assignment of deed of trust (showing note buyer as lien holder)
Timeline: 30-60 minutes at title company
Step 13: Post-Closing
After closing:
We record deed of trust in our name
We set up loan servicing
Buyer receives payment instructions from us
You receive your funds via wire
You're done—completely out
You never interact with the buyer again. All payment collection and servicing is our responsibility.
Phase 6: Ongoing (Your Involvement: Zero)
Step 14: We Handle Everything
From this point forward:
We collect monthly payments from buyer
We send statements
We track taxes and insurance
We handle any issues
We foreclose if necessary (rare)
You have zero ongoing responsibility.
The Paperwork: Complete Document List
Here's every document involved (we provide templates for all of these):
Property Sale Documents:
Purchase and Sale Agreement
Warranty Deed
Seller's Disclosure Statement
Property Condition Disclosure
Lead Paint Disclosure (if built pre-1978)
Closing Settlement Statement (HUD-1)
Seller Financing Documents: 7. Promissory Note (buyer's promise to pay) 8. Deed of Trust or Mortgage (security instrument) 9. Payment Schedule / Amortization Table 10. Truth in Lending Disclosure (TILA) - if required 11. Loan Agreement (terms and conditions) 12. Notice of Right to Cancel (if owner-occupied)
Note Sale/Assignment Documents: 13. Assignment of Promissory Note 14. Assignment of Deed of Trust 15. Allonge (endorsement of note) 16. Note Purchase Agreement (between seller and note buyer) 17. Settlement Statement for Note Purchase 18. Servicing Agreement
Title and Recording Documents: 19. Title Commitment 20. Title Insurance Policy (owner's and lender's) 21. Survey (if required) 22. Recording Cover Sheet
Payment and Closing Documents: 23. Wire Transfer Instructions 24. Form W-9 (tax reporting) 25. Closing Disclosure (TRID) 26. Disbursement Authorization
We handle or provide templates for ALL of these.
What Damen Capital Provides
We make this process completely turnkey:
✓ Pre-Sale Support
Free property evaluation
Acceptable terms guidance
Pre-approval commitment
Marketing advice
Sale price guidance
✓ Document Templates
We provide:
Promissory note template
Deed of trust template
Loan agreement template
Payment schedule
All necessary disclosures
✓ Title Company Coordination
We handle:
Direct communication with title company
Document review and approval
Closing scheduling
Funding coordination
Recording instructions
✓ Fast Closings
7-14 days from contract to close
We don't delay your transaction
Funding guaranteed at closing
No last-minute surprises
✓ Post-Closing Servicing
We manage:
All payment collection
Monthly statements to buyer
Tax and insurance tracking
Default management
Foreclosure (if needed)
✓ Competitive Pricing
We pay:
60-75% of note value (depending on terms and property)
Fair market rates
Quick evaluation
Transparent pricing
Real Examples: How This Works
Example #1: Texas Land Investor
Property: 10 acres in East Texas
Marketing Approach:
Listed at $60,000 cash (sat for 4 months, no offers)
Relisted at $75,000 with seller financing
Multiple offers in 2 weeks
Deal Structure:
Sale price: $75,000
Down payment: $7,500 (10%)
Note: $67,500 at 10% for 10 years
Monthly payment: $891
Note Sale:
We purchased note for $47,250 (70%)
Investor netted: $54,750 at closing ($7,500 + $47,250)
Result:
Sold $15K higher than cash price
Netted $5,250 less than seller financing list price
Sold in 2 weeks instead of 4+ months waiting for cash buyer
Zero risk, zero servicing
Capital available immediately for next deal
Example #2: Florida Subdivision Lots
Property: 5 subdivision lots purchased in bulk
Challenge:
Bought 5 lots for $125,000 ($25K each)
Market value: $45,000 each
Cash buyers offering $35,000 each
Needed to sell quickly to fund next acquisition
Solution:
Offered seller financing: $40,000 each ($200K total)
Terms: 15% down, 9% interest, 7 years
Sold all 5 lots in 30 days
Note Sale Structure:
Total notes: $170,000 (after down payments)
We purchased all 5 notes for $119,000 (70%)
Investor received: $30,000 down + $119,000 = $149,000
Result:
Original investment: $125,000
Net proceeds: $149,000
Profit: $24,000
Timeline: 30 days from listing to funded
Vs. waiting months for cash buyers at $175K total
Example #3: Arizona Raw Land
Property: 40 acres raw desert land
Traditional Approach Tried:
Listed at $120,000 cash
6 months on market
Only offer: $85,000 cash
Investor frustrated
Our Approach:
Relisted at $140,000 with financing
10% down, 10% interest, 10 years
Sold in 3 weeks
Note Sale:
Sale price: $140,000
Down: $14,000
Note: $126,000
We purchased note: $88,200 (70%)
Net to investor: $102,200
Result:
$17,200 more than cash offer
Sold in 3 weeks vs. 6+ months
No servicing or risk
On to next deal immediately
Comparison: Different Exit Strategies
Let's compare three approaches for selling a $100,000 property:
Option A: Cash Sale
List at: $85,000 (must discount for cash)
Time on market: 4-6 months
Buyer pool: Small (cash only)
Net proceeds: $85,000
Time to capital: 4-6 months
Risk: None
Ongoing management: None
Option B: Hold Seller Financing
List at: $110,000 (premium for financing)
Time on market: 1-2 months
Down payment: $11,000
Finance: $99,000 at 10% for 10 years
Net proceeds: $11,000 now, $1,304/month for 10 years
Total received: $167,480 over 10 years
Time to full capital: 10 years
Risk: Default risk (15-25% chance)
Ongoing management: High (payments, collections, taxes, foreclosure risk)
Option C: Sell Note at Closing
List at: $110,000 (premium for financing)
Time on market: 1-2 months
Down payment: $11,000
Finance: $99,000 at 10%
Sell note for: $69,300 (70%)
Net proceeds: $80,300 at closing
Time to capital: 1-2 months
Risk: None (we take it)
Ongoing management: None
Winner: Option C
Nearly same net as cash sale ($80K vs $85K)
Sold 3-4 months faster
Larger buyer pool
Zero risk
Zero management
Capital available immediately
Common Questions About Selling at Closing
Q: Does the buyer know I'm selling the note?
A: Yes, it's disclosed in the closing documents. The buyer signs the promissory note and deed of trust knowing it may be assigned. This doesn't affect them—they're still getting the financing they wanted, just making payments to us instead of to you.
Q: What if the buyer doesn't agree to the assignment?
A: Standard promissory notes include language allowing assignment. It's a common practice in lending. We've never had a buyer object.
Q: What terms do you require for the seller financing?
A: We're flexible, but prefer:
10-20% down payment minimum
9-12% interest rate
5-10 year term
Standard amortizing loan
We can work with other structures—call to discuss.
Q: How do you determine what you'll pay for the note?
A: Based on:
Property value and condition
Down payment size (higher down = less risk)
Interest rate
Loan-to-value ratio
Property location and marketability
Typical range: 60-75% of note value
Q: Can I sell just part of the note?
A: Yes! We can purchase:
Full note
Partial note (first X months of payments)
Percentage of each payment
Q: What if the buyer defaults after I sell the note?
A: Not your problem. We take all default risk. Once you sell the note, you're completely out with no recourse or liability.
Q: How fast can this happen?
A: From contract to closing: 7-14 days typically. We don't slow down your closing.
Q: Do I need good credit to sell my note?
A: No. We're buying the note based on the property and buyer, not your credit.
Q: What states do you buy notes in?
A: Nationwide, except AZ, CA, NV, ND, SD, VT, MT, NY, and NJ.
Q: Can I use this strategy repeatedly?
A: Absolutely! Many investors use this for every property they sell. It becomes your standard business model.
Why This Changes Your Business
Before This Strategy:
Limited to cash buyers
Long time on market
Lower prices
Capital tied up for years
After This Strategy:
10X larger buyer pool
Sell in weeks, not months
Higher sale prices
Immediate capital for next deals
Zero risk and zero servicing
This lets you:
Scale faster (more capital velocity)
Compete better (offer financing others can't)
Reduce risk (no default exposure)
Focus on acquisitions (not servicing)
It's a complete competitive advantage.
Getting Started: Your Action Plan
Step 1: Property Evaluation
Contact us with:
Property address
Expected sale price
Basic property details
We provide:
Pre-approval for note purchase
Recommended financing terms
What we'll pay
Step 2: List Your Property
Market with confidence:
"Seller Financing Available"
Terms that attract buyers
Knowing you'll get cash at closing
Step 3: Under Contract
Send us:
Purchase contract
Buyer info
Closing date
We handle everything from there.
Step 4: Close and Get Paid
Show up at closing
Sign documents
Receive wire
Done
The Bottom Line
Selling your land note at closing gives you:
Higher sale prices (seller financing premium)
Faster sales (bigger buyer pool)
Immediate cash (no waiting years)
Zero risk (no default exposure)
Zero work (no servicing)
It's the best of all worlds.
Most land investors don't know this strategy exists. Now you do. And it can transform your business.
Key Takeaways:
Offer seller financing to sell faster and at higher prices
Sell the note at closing to get cash immediately
We handle all paperwork and coordination
You net nearly the same as cash sale but sell 3-5X faster
Zero ongoing management or risk
Can be used for every property you sell
Ready to sell your next property with this strategy?
Get your pre-approval in 24 hours.
Call/Text: 302-526-0200Email: eric@damencapital.com
