When you decide to sell your seller-financed land note in Texas, you face a key choice: sell the entire note (full sale) or just a portion of future payments (partial sale).
Many sellers assume it's all-or-nothing — but partial sales are one of the most powerful tools we offer at Longhorn Money Services. They give you immediate cash while preserving part of your income stream.
This in-depth 2026 guide compares both options side-by-side, explains pricing impact, tax advantages, real examples, and helps you decide which fits your situation best.
For the complete selling overview, start with our main guide to selling your land note in Texas.
What Is a Full Sale?
You sell 100% of remaining payments and transfer the entire note to the buyer. You receive one lump sum and are completely done — no more collecting payments, no more risk.
- Best for: needing maximum cash now, tired of managing payments, or simplifying estate/divorce.
- Typical discount: higher (see discount guide).
What Is a Partial Sale?
You sell a specific number of future payments (e.g., next 60 out of 180) or a dollar amount. After the buyer collects those payments, the note reverts back to you and you resume receiving the remaining payments.
- Common structures: fixed number of payments, specific dollar amount, or percentage split.
- Best for: needing some cash now but wanting to keep long-term income or hedge against inflation.
Pros and Cons Comparison
| Factor | Full Sale | Partial Sale |
|---|---|---|
| Cash Upfront | Maximum possible | Lower (only for portion sold) |
| Future Income | None | Preserved after partial period |
| Discount | Higher (longer risk for buyer) | Lower (shorter buyer exposure) |
| Tax Impact | Full gain acceleration | Only portion sold taxed now (see tax guide) |
| Timeline | 2-4 weeks | Often faster (less due diligence) |
| Risk Transfer | Complete | Partial (you retain tail risk) |
How Partial Sales Affect Pricing and Discount
Partial sales typically price 5-15% better than full sales because the buyer's risk window is shorter.
- Example: $150K remaining balance, 180 payments left.
- Full sale: $105K cash (30% discount).
- Partial (next 72 payments): $60K cash (20% effective discount on portion).
Net: you get cash now + resume payments later. Related: full discount breakdown.
Tax Advantages of Partial Sales
Only the portion sold accelerates gain under installment rules — deferring tax on the retained part. This can significantly reduce immediate tax hit (details in tax implications guide).
When a Partial Sale Makes Sense
- Need $50K-$100K now but want to keep monthly income.
- Retirement planning: cash for immediate needs, retain future payments.
- Medical or family expenses without liquidating everything.
- Hedge: keep tail payments that may grow with property value.
- Divorce/inheritance: split asset without full sale.
When a Full Sale Is Better
- Maximum cash needed (new investment, debt payoff).
- Tired of being the bank or chasing payments.
- Concerned about long-term default risk.
- Estate simplification.
How We Structure Partial Sales
We customize almost any way:
- Fixed payments (next 84 months).
- Dollar amount ($75K worth of payments).
- Split payments (buyer gets 50% of each payment until paid off).
- Balloon partials or combinations.
Requires slightly more documentation but closes in similar timeline.
Real 2026 Examples
- Seller A: Needed $80K for home down payment → partial 96 payments → $80K cash, note reverted after 8 years.
- Seller B: Retired, wanted max cash → full sale → $140K lump sum.
- Seller C: Medical bills → partial $50K worth → lower tax, kept income.
Common Myths About Partial Sales
- Myth: "Partials are complicated" → We handle all paperwork.
- Myth: "Buyers don't do partials" → We do hundreds yearly.
- Myth: "Partials price much worse" → Actually better due to shorter risk.
Avoid pitfalls in our common mistakes guide.
Frequently Asked Questions
Can I really keep part of my note with a partial sale?
Yes — after the buyer collects the agreed portion, the note legally reverts to you and payments resume.
Do partial sales get better pricing?
Yes — typically 5-15% lower discount because the buyer's exposure is shorter.
Are partial sales more complicated?
Slightly more paperwork, but we handle everything. Closing timeline is similar or faster.
What tax advantage does a partial have?
Only the sold portion triggers gain acceleration — deferring tax on the rest.
Can I do multiple partials over time?
Yes — sell chunks as needed.
Is a partial better than a full sale?
Depends on your goals — partial preserves income, full maximizes cash and eliminates risk.
Do you buy partials on non-performing notes?
Case-by-case, but often yes with adjusted terms.
Not sure which option fits? Call Sandy Henderson at (210) 828-3573 or submit your note details — we'll model both full and partial scenarios for free.