If you're holding a seller-financed land note in Texas and want to convert it to cash, you've probably discovered that finding a legitimate buyer isn't as simple as it sounds. The note buying industry is filled with brokers, middlemen, and companies that make the process more complicated than it needs to be. This guide cuts through the noise and shows you exactly how to find direct land note buyers in Texas who can give you a fair cash offer without the runaround.
The Three Types of Land Note Buyers
Before you start shopping your note around, you need to understand who you're dealing with. There are three distinct types of buyers in the Texas land note market, and knowing the difference can save you thousands of dollars.
Note Brokers are middlemen who don't actually buy notes themselves. They take your note information, shop it to their network of buyers, and take a commission (typically 2-5% of the sale price) when a deal closes. The problem? You're paying for their service whether you realize it or not, and they add time to the process. If you're exploring whether to sell through a broker or go direct, the math usually favors cutting out the middleman.
Institutional Note Buyers are large funds and investment companies that buy notes in bulk. They have strict criteria—minimum note balances (often $50,000+), specific seasoning requirements, and rigid underwriting standards. If your note doesn't fit their box, they'll pass. These buyers are better suited for selling a portfolio of land notes rather than individual notes.
Direct Private Buyers are companies like Longhorn Money Services that use their own capital to purchase notes directly from sellers. We don't broker notes to other buyers, we don't charge commissions, and we can be flexible on note characteristics that would disqualify you with institutional buyers. This is typically the best option for Texas land note holders who want a straightforward sale.
What Land Note Buyers Look For in Texas
Understanding what note buyers evaluate helps you know what to expect when you request a quote. Here are the key factors:
Payment History (Seasoning) — Has the borrower been making payments, and for how long? Notes with 12+ months of on-time payments are considered "seasoned" and command higher prices. That said, we also buy non-performing land notes that other buyers won't touch.
Interest Rate — Higher interest rates mean better cash flow, which increases your note's value. The impact of interest rate on note value is significant—a note at 10% is worth considerably more than the same note at 6%.
Remaining Balance and Term — How much is left on the note, and how long until it's paid off? Larger balances with reasonable remaining terms (5-15 years) are generally more attractive to buyers.
Down Payment — How much equity does the borrower have in the property? Notes where the buyer put down 10-20% or more are less risky because the borrower has skin in the game. We address selling notes with low down payments in a separate guide.
Property Type and Location — Texas land varies dramatically. A note on a residential lot in Harris County is different from a note on hunting land in West Texas. We buy notes on all property types across all 254 Texas counties.
How to Find Legitimate Note Buyers (And Avoid Scams)
The note buying industry unfortunately attracts some bad actors. Here's how to identify legitimate buyers:
They provide a written quote. Any serious buyer will give you a formal offer in writing after reviewing your note details. If someone is vague about numbers or only wants to talk on the phone, be cautious.
They explain the discount. All notes sell at a discount to their face value—that's how buyers make their return. A trustworthy buyer will explain how discounts work and why your note is priced the way it is. If they can't explain it, they're probably hiding something.
They don't pressure you. Legitimate buyers know that selling a note is a significant decision. We give you time to think, answer your questions, and never use high-pressure tactics. If someone is rushing you to sign, walk away.
They have a physical presence. Can you find their office address? Do they have a real phone number with a person who answers? Longhorn Money Services has been operating in Texas for decades—we're not a faceless website.
They handle their own closings. Direct buyers manage the entire closing process in-house or with established title companies. Brokers hand you off to whoever ends up buying the note.
Want a quote from a direct buyer? Call Sandy at (512) 861-0000 or submit your note details online. You'll receive a written offer within 24-48 hours with no obligation and no broker fees.
Note Broker vs. Direct Buyer: The Real Cost Difference
Let's do the math on a real example. Say you have a land note with a $75,000 remaining balance.
With a Broker:
- Broker shops your note to buyers
- Best offer comes in at $60,000 (80% of balance)
- Broker takes 4% commission: $2,400
- You receive: $57,600
- Timeline: 4-8 weeks (broker shopping + buyer due diligence)
With a Direct Buyer:
- Direct buyer evaluates and makes offer
- Offer: $60,000 (80% of balance)
- No commission
- You receive: $60,000
- Timeline: 2-3 weeks
That's $2,400 more in your pocket and half the time. For a more detailed comparison, see our guide on broker fees vs. direct buyer pricing.
How to Get Quotes from Multiple Buyers
Even though we believe direct buyers offer the best value, it's smart to get multiple quotes. Here's how to do it efficiently:
Gather your documents first. Before reaching out to anyone, collect your note documents: the promissory note, deed of trust or contract for deed, payment history, and property information. Having these ready speeds up the quote process.
Start with direct buyers. Contact 2-3 direct note buying companies. Ask upfront: "Do you buy notes with your own funds, or do you broker to other buyers?" This saves time.
Compare apples to apples. Make sure each quote specifies the net amount you'll receive after all fees. Some buyers quote gross amounts before their "processing fees" get deducted.
Ask about timeline. If you need to sell quickly, timeline matters as much as price. A buyer offering $1,000 more but taking 6 weeks longer might not be the best choice.
Questions to Ask Any Note Buyer
Before accepting an offer, ask these questions:
- "Are you buying this note with your own funds or brokering it?" (Direct buyers should answer "our own funds")
- "What fees will be deducted from my proceeds?" (Should be minimal or zero with a direct buyer)
- "What's your timeline from acceptance to funding?" (Reputable buyers can close in 7-21 days)
- "Who handles the closing?" (Should be a licensed title company or attorney)
- "What happens if something comes up in due diligence?" (Good buyers communicate issues rather than disappearing)
- "Can I see references or reviews?" (Established buyers have a track record)
The Process of Selling to a Direct Buyer
Here's what to expect when you sell your land note to Longhorn Money Services:
Step 1: Submit Your Note Information — Fill out our simple online form or call us with basic details: remaining balance, interest rate, payment history, and property location.
Step 2: Receive Your Quote — Within 24-48 hours, you'll receive a written offer explaining exactly what we'll pay and why. No obligation, no pressure.
Step 3: Accept and Send Documents — If you like the offer, you'll send us copies of your note documents for verification. We explain the complete step-by-step process in detail.
Step 4: Due Diligence — We verify the note terms, property ownership, and payment history. This typically takes 5-7 business days.
Step 5: Closing and Funding — We use a Texas title company to handle the assignment of the note. Once documents are signed, funds are wired directly to your account.
The entire process typically takes 2-3 weeks from first contact to cash in your account.
Ready to see what your note is worth? Get a no-obligation quote from a direct buyer. Call (512) 861-0000 or request your quote online.
Why Texas Land Notes Are Unique
Texas has some unique characteristics that affect the land note market:
Property Tax Considerations — Texas has no state income tax but relatively high property taxes. Notes on properties with back taxes require special handling.
Contract for Deed vs. Deed of Trust — Texas allows both structures. Understanding the difference between contract for deed and deed of trust matters for how your note sale is processed.
254 Counties — Texas is massive, and land values vary enormously. We buy notes in every Texas county, from East Texas piney woods to West Texas desert to the Hill Country.
Mineral Rights — Some Texas land notes involve properties with mineral rights. If your note is on property with mineral rights, we can still buy it—see our guide on selling notes with mineral rights.
Frequently Asked Questions
How much will I get for my land note?
Most performing land notes sell for 70-90% of the remaining balance, depending on factors like interest rate, payment history, and property type. Use our guide on how much your land note is worth for a detailed breakdown.
Do I need a lawyer to sell my land note?
No, you don't legally need a lawyer, though you're welcome to have one review the transaction. We address this in detail in do I need a lawyer to sell a land note.
How long does it take to sell a land note?
With a direct buyer like Longhorn Money Services, you can receive a quote in 24-48 hours and close in as little as 7-14 days. Brokers typically take 4-8 weeks.
Can I sell only part of my note?
Yes, partial note sales are possible. You sell a portion of your future payments while keeping the rest. Learn more about full vs. partial note sales.
What if my buyer has missed payments?
We buy non-performing notes too, though they sell at higher discounts. See what to do when your land note buyer isn't paying.
Are there tax consequences to selling a note?
Yes, selling a note may trigger capital gains taxes. We cover the basics in tax implications of selling a seller-financed note, but consult a tax professional for your specific situation.
Why Choose Longhorn Money Services
We've been buying land notes in Texas for over four decades. Here's what sets us apart:
- Direct Buyer — We use our own capital. No brokering, no middlemen, no commissions.
- All Texas Counties — From the Panhandle to the Valley, we buy notes statewide.
- Flexible Criteria — Low down payment, non-performing, unusual property type? We'll still make an offer.
- Fast Quotes — Written offers in 24-48 hours.
- Quick Closings — Fund in as little as 7 days when you need cash fast.
- Transparent Process — We explain our pricing and answer every question.
Get Your Cash Offer Today
You've done your research. You understand the difference between brokers and direct buyers. You know what to look for and what questions to ask. Now it's time to find out what your note is actually worth.
Call Sandy Henderson at (512) 861-0000 or submit your note details online. Within 24-48 hours, you'll have a written offer with no obligation and no pressure. If it works for you, we can close in as little as a week. If not, you've lost nothing but a few minutes of your time.
That's how note buying should work.