If you're holding a seller-financed land note in South Texas and want to convert those monthly payments into immediate cash, you've come to the right place. South Texas — from the Rio Grande Valley to the Coastal Bend — represents one of the most active land markets in the state, and that means strong demand for land notes in this region. Whether your property is in Hidalgo County, Cameron County, Webb County, or anywhere in between, this comprehensive guide will show you exactly how to sell your note for the best possible price.
South Texas has unique characteristics that affect land note values: the booming border economy, agricultural operations, oil and gas activity, and rapid population growth in cities like Laredo, McAllen, and Brownsville. Understanding these regional factors is essential to maximizing your payout when you decide to sell. For a broader overview of the entire process, our complete guide to selling your Texas land note covers the fundamentals that apply statewide.
Understanding the South Texas Land Market
South Texas encompasses a vast and economically diverse region stretching from the Rio Grande Valley in the south to the Coastal Bend area around Corpus Christi, and inland to the brush country surrounding Laredo and Eagle Pass. This region has experienced remarkable growth over the past decade, driven by international trade, energy development, agriculture, and increasing migration from other parts of Texas seeking more affordable land.
The land market in South Texas differs significantly from other Texas regions. Properties here range from small residential lots in colonias near the border to massive ranch tracts in Duval and Jim Hogg counties. Agricultural land — including citrus groves in the Valley and cattle ranches in the brush country — makes up a significant portion of transactions. This diversity means that land notes from South Texas come in all shapes and sizes, from small-balance notes on quarter-acre lots to substantial notes on hundred-acre parcels.
What makes South Texas particularly interesting for note buyers is the strong tradition of seller financing in this region. Many landowners in South Texas have historically offered owner financing to help buyers who might not qualify for traditional bank loans. This has created a robust secondary market for land notes, with experienced buyers like Longhorn Money Services actively purchasing notes throughout all South Texas counties.
The economic drivers in South Texas also impact note values positively. The maquiladora industry along the border, the Port of Brownsville, natural gas production in the Eagle Ford Shale, and agricultural exports all contribute to a stable economic base. When a region has strong economic fundamentals, the land notes secured by properties in that region tend to hold their value better, which translates to better offers for note sellers.
Counties We Cover in South Texas
Longhorn Money Services purchases land notes in every single South Texas county. With 42 years of experience as a direct buyer, we've completed transactions throughout this region and understand the unique characteristics of each area. Here's a breakdown of the major South Texas counties where we actively buy notes:
Rio Grande Valley Counties: Cameron County (Brownsville, Harlingen, San Benito), Hidalgo County (McAllen, Edinburg, Mission, Pharr), Starr County (Rio Grande City), and Willacy County (Raymondville). The Valley is one of the fastest-growing regions in Texas, and land notes here benefit from strong demand and appreciating property values.
Border Counties: Webb County (Laredo), Zapata County, Maverick County (Eagle Pass), Val Verde County (Del Rio), and Kinney County (Brackettville). These counties are heavily influenced by international trade and border commerce, creating unique economic dynamics that affect land values.
Coastal Bend Counties: Nueces County (Corpus Christi), San Patricio County, Kleberg County (Kingsville), Jim Wells County (Alice), and Brooks County. The coastal economy, petroleum industry, and tourism all support strong land markets in these areas.
Brush Country Counties: Duval County, Jim Hogg County, La Salle County, McMullen County, Live Oak County, and Bee County. These rural counties are known for ranching, hunting leases, and oil and gas production. Land notes on ranch properties in these areas can be particularly valuable.
Additional South Texas Counties: Dimmit County (Carrizo Springs), Zavala County (Crystal City), Frio County (Pearsall), Atascosa County (Pleasanton), Wilson County, Karnes County, Goliad County, Victoria County, Refugio County, Aransas County, and Calhoun County. Each of these counties has active land markets, and we purchase notes on properties throughout.
Own a land note in any South Texas county? Get My Offer today — free quote in 24 hours, no obligation, and no broker fees eating into your proceeds.
Why South Texas Note Holders Choose to Sell
Over our four decades of buying land notes in South Texas, we've heard countless reasons why note holders decide to sell. Understanding these motivations can help you determine if selling is the right choice for your situation. If you're tired of collecting monthly payments, you're not alone — it's one of the most common reasons we hear.
Immediate Cash Needs: Life happens. Medical expenses, business opportunities, debt consolidation, or simply wanting to enjoy retirement without worrying about managing a note are all valid reasons to convert your payment stream into lump-sum cash. Many South Texas note holders are retirees who originally sold land with owner financing and now prefer the simplicity of cash in the bank.
Concern About Default Risk: Carrying a land note means accepting the risk that your buyer might stop paying. Economic fluctuations in border communities, changes in the agricultural sector, or personal circumstances affecting your buyer can all lead to payment problems. By selling your note, you transfer this risk to the buyer and secure your money regardless of what happens next. Our guide on selling versus foreclosing explores this decision in depth.
Relocation: Many note holders who sold land in South Texas have since moved elsewhere — perhaps to Houston, Dallas, or even out of state. Managing a land note from afar can be cumbersome, especially if issues arise. Selling the note eliminates the connection and provides clean closure.
Estate Planning: Dividing a land note among multiple heirs can be complicated. Converting the note to cash before passing it on simplifies estate distribution and avoids potential family conflicts over managing the note. Understanding the tax implications of selling your land note is important for estate planning purposes.
Investment Reallocation: The money tied up in a land note could potentially generate better returns elsewhere. Some note holders prefer to reinvest in different assets, start businesses, or simply have liquid funds available for opportunities as they arise.
Frustration with Payment Collection: Chasing late payments, dealing with partial payments, or simply managing the administrative burden of being a lender can be exhausting. Selling your note means never having to worry about whether this month's payment will arrive on time.
How South Texas Land Notes Are Valued
When you decide to sell your land note, understanding what determines its value helps you evaluate offers and negotiate effectively. Our comprehensive guide to land note valuation in Texas covers the general principles, but here we'll focus on factors particularly relevant to South Texas properties.
Property Location Within South Texas: Not all South Texas locations are valued equally. A note secured by land in a growing area like McAllen or near Corpus Christi may command a higher price than one in a remote rural county. Proximity to cities, highways, and economic activity centers all play a role. However, even notes in less populated areas can be valuable if the underlying property has solid characteristics.
Remaining Balance and Payment Terms: The amount still owed on your note and the structure of payments significantly impact value. Notes with higher balances typically generate larger payouts, though the percentage offered may vary. The interest rate you're charging also matters — notes with competitive rates are more attractive to buyers.
Down Payment and Equity: When you originally sold the land, what down payment did your buyer make? Higher down payments indicate a buyer with more commitment to the property and reduce the likelihood of default. This directly affects the discount rate applied to your note.
Payment History: Has your buyer paid on time consistently? A strong payment history demonstrates reliability and reduces perceived risk. Notes with seasoning — meaning several years of consistent payments — typically receive better offers than brand-new notes.
Property Type and Use: Residential lots, agricultural land, commercial properties, and rural acreage are all evaluated differently. In South Texas, ranch land and agricultural property are common, and buyers with expertise in this region understand how to value these property types appropriately.
Documentation Quality: Having proper documentation for your land note is crucial. This includes the original promissory note, deed of trust, title insurance, and payment records. Missing or incomplete documentation can delay the process or reduce offers. Check our detailed documents checklist to ensure you have everything ready.
Regional Considerations Unique to South Texas
South Texas has several unique factors that experienced note buyers understand and account for in their valuations. Working with a buyer who knows this region — like Longhorn Money Services with over four decades of Texas experience — ensures these factors are properly considered.
Colonia Properties: Some South Texas land transactions involve properties in colonias — unincorporated communities that historically lacked basic infrastructure. While many colonias have improved significantly in recent years, notes secured by colonia properties may be evaluated differently. An experienced buyer understands the nuances and can still make competitive offers on these notes.
Agricultural and Ranch Land: The brush country of South Texas is prime ranch territory. Notes secured by larger agricultural tracts require a buyer who understands ranch land values, hunting lease potential, and agricultural economics. These notes can be quite valuable, especially when the underlying property has oil and gas potential or established hunting income.
Border Economic Factors: The Texas-Mexico border creates unique economic conditions. International trade, maquiladora employment, and cross-border commerce all influence land values in border counties. An experienced buyer tracks these economic indicators to ensure fair valuation of border-area notes.
Oil and Gas Activity: The Eagle Ford Shale extends into South Texas, and some properties may have mineral rights or be located near production areas. While the note itself typically covers the surface estate, proximity to oil and gas development can enhance property values and note desirability.
Flood Zone Considerations: Parts of South Texas, particularly the Rio Grande Valley, have areas designated as flood zones. Properties in these areas may have specific insurance requirements, which can affect both property values and note evaluations. However, experienced buyers are familiar with these considerations and factor them appropriately.
Have questions about how your South Texas note would be valued? Get My Offer for a free, no-obligation quote. We'll evaluate your specific note and provide a competitive offer within 24 hours.
The Selling Process: Step by Step
Selling your South Texas land note is straightforward when you work with an experienced direct buyer. Our detailed step-by-step guide walks through the entire process, but here's a South Texas-specific overview:
Step 1: Initial Contact and Information Gathering
You reach out to us with basic information about your note: the property location, remaining balance, payment amount, interest rate, and how long payments have been coming in. You can call George at (210) 828-3573 or submit your information through our website for a quick response.
Step 2: Preliminary Offer
Based on your initial information, we provide a preliminary offer within 24 hours. This gives you a solid idea of what to expect. For South Texas properties, our deep familiarity with the region allows us to provide accurate preliminary valuations quickly.
Step 3: Document Review
Once you decide to proceed, we'll request copies of your note documentation. This includes the promissory note, deed of trust, and payment history. Don't worry if you're missing something — we can often work with title companies to reconstruct necessary documents.
Step 4: Due Diligence
We verify the property details, confirm the note terms, and complete our evaluation. This process typically takes just a few days. Because we've purchased so many notes in South Texas, we're familiar with local title companies, county records systems, and regional considerations that can speed this process.
Step 5: Final Offer and Closing
We present our final offer in writing. If you accept, we coordinate with a title company to handle the closing. Most transactions close within 2-3 weeks. For urgent situations, we can often close in as little as 7 days.
Step 6: Get Paid
At closing, you receive your funds via wire transfer or check. From that point forward, we own the note and handle all future payment collection from your buyer. You're completely free of the responsibility.
For a complete understanding of how long the process takes, check our timeline guide which breaks down each phase in detail.
Why Work with a Direct Buyer Instead of a Broker
When selling your South Texas land note, you have two main options: work with a note broker or sell directly to a buyer like Longhorn Money Services. Our detailed comparison of brokers versus direct buyers explains the differences thoroughly, but here are the key advantages of going direct:
No Broker Commissions: Brokers typically charge 2-10% of your note's value as commission. On a $50,000 note, that could mean $2,500 to $5,000 coming out of your pocket. As a direct buyer, we don't charge any commissions or fees. The offer we make is what you receive.
Faster Decisions: Brokers must shop your note to multiple buyers, negotiate on your behalf, and coordinate between parties. This adds time and complexity. When you work directly with us, we evaluate your note ourselves and make decisions quickly. Our analysis of broker fees versus direct buyer pricing shows how direct transactions typically move faster.
Local Expertise: National brokers may not understand South Texas markets. A note on ranch land in McMullen County or a lot in a Rio Grande Valley subdivision requires specific regional knowledge. With 42 years of buying notes throughout Texas, we have the expertise to evaluate South Texas properties accurately and fairly.
Single Point of Contact: When you work with us, George Mack is your contact from start to finish. You're not passed between salespeople, processors, and closers. This personal attention ensures your questions are answered and your transaction proceeds smoothly.
Flexible Terms: As direct buyers, we can structure deals in ways that work for your specific situation. Need a partial sale? We can do that. Want to close quickly? We accommodate that. Have a note that other buyers might reject? We consider every note on its individual merits.
Full Sale vs. Partial Sale: Your Options
When selling your land note, you don't have to sell the entire thing. Our comparison of full versus partial sales helps you understand both options, but here's a quick overview:
Full Sale: You sell your entire note and receive a lump-sum payment. From that point forward, you have no connection to the note or the property. This is the most common choice for note holders who want clean, complete closure and maximum immediate cash.
Partial Sale: You sell a portion of your payment stream — perhaps the next 5 years of payments — and receive cash for that portion. After the sold payments are collected, the remaining payments revert to you. This option works well if you need some cash now but want to preserve some of your future income stream. Our partial sale guide explains the details and helps you determine if this option makes sense.
The right choice depends on your specific situation: how much cash you need now, your comfort with continuing to have a financial connection to the property, and your long-term financial plans. We're happy to discuss both options and help you determine which makes the most sense for your circumstances.
Common Mistakes to Avoid When Selling
Our comprehensive guide to avoiding mistakes when selling your land note covers many potential pitfalls. Here are some that are particularly relevant for South Texas note holders:
Not Getting Multiple Perspectives: Even though we're confident in our offers, we encourage you to understand the market. Read our guides on Texas land note buyers and broker versus buyer options to ensure you're making an informed decision.
Overlooking Documentation: South Texas transactions sometimes have unique documentation situations, especially for older notes or properties in colonias. Gather your paperwork early and let us help you address any gaps. Missing documents can delay closings or reduce offers.
Waiting Too Long with Problem Notes: If your buyer has started missing payments, don't wait to see if things improve. The longer a note goes without payment, the less it's worth. Consider your options, including selling non-performing notes, before the situation deteriorates further.
Not Understanding the Timeline: Some note holders expect instant closings, while others underestimate how quickly we can move. Understanding realistic timelines helps you plan appropriately and reduces frustration.
Ignoring Tax Implications: The sale of a land note has tax consequences. While we're not tax advisors, our guide to tax implications provides an overview, and we always recommend consulting with a tax professional before completing a sale.
What About Non-Performing Notes in South Texas?
Not every land note performs perfectly. Economic fluctuations in border communities, agricultural downturns, or personal circumstances affecting your buyer can lead to missed or late payments. If you're dealing with a non-performing land note, you still have options.
Many note holders in this situation face a difficult choice: continue trying to collect, initiate foreclosure, or sell the note as-is. Foreclosure in Texas can be complex and time-consuming, and there's no guarantee you'll recover your full value. Our guide on selling versus foreclosing explores this decision in detail.
We purchase non-performing notes in South Texas, though naturally the offers reflect the increased risk involved. However, selling a problem note provides immediate cash and eliminates your ongoing headache. You avoid the costs and uncertainty of foreclosure and move on with your life.
Even if other buyers have told you they're not interested in your non-performing note, reach out to us. With our experience and capacity, we can often make offers on notes that others reject.
Dealing with a problem note in South Texas? Get My Offer and see what we can do. No judgment, no pressure — just a straight evaluation and honest offer.
Major South Texas Markets: City-Specific Insights
While we buy notes throughout all of South Texas, certain cities and metro areas have particularly active land note markets:
Laredo (Webb County): As one of the busiest inland ports in the United States, Laredo has a dynamic economy driven by international trade. Land values have appreciated steadily, and notes secured by Laredo-area properties are often attractive to buyers. Check our Laredo-specific guide for detailed information about selling notes in this border city.
McAllen-Edinburg-Mission Metro (Hidalgo County): The McAllen metro area is one of the fastest-growing regions in Texas. Population growth, healthcare industry expansion, and retail development have all supported strong land values. Notes in Hidalgo County benefit from this growth trajectory.
Brownsville-Harlingen (Cameron County): The southernmost metro area in Texas has seen significant investment in recent years. The Port of Brownsville, SpaceX facilities nearby, and continued commercial development all contribute to a positive economic outlook for the region.
Corpus Christi Metro: While sometimes considered part of the Coastal Bend rather than South Texas proper, Corpus Christi and surrounding areas share many characteristics with South Texas markets. See our Corpus Christi guide for specific information about selling notes in this coastal city.
Eagle Pass (Maverick County): This border town has grown significantly and benefits from the trade corridor along the Rio Grande. Notes secured by Eagle Pass-area properties are valued based on local market conditions and economic trends.
Del Rio (Val Verde County): While smaller than other border cities, Del Rio has a stable economy supported by Laughlin Air Force Base and international trade. Land notes in this area can be attractive investments.
How to Get Started Today
If you're ready to explore selling your South Texas land note, the process begins with a simple conversation. Here's how to take the first step:
Option 1: Online Quote Request
Visit longhornmoneyservices.com and click "Get My Offer." Fill out the brief form with your note details, and we'll respond with a preliminary offer within 24 hours.
Option 2: Call Directly
Call George at (210) 828-3573. George can answer your questions, discuss your specific situation, and provide initial guidance on your note's value. There's no obligation and no pressure — just honest conversation about your options.
Remember, getting an offer costs you nothing. Even if you're just curious about what your note might be worth, we're happy to provide a free valuation. Many South Texas note holders request quotes just to understand their options, even if they don't sell immediately.
Why South Texas Note Holders Choose Longhorn Money Services
Over the past 42 years, we've earned a reputation as one of Texas's most reliable land note buyers. Here's why note holders throughout South Texas choose to work with us:
Unmatched Experience: Four decades of buying notes throughout Texas means we've seen virtually every situation. From simple performing notes to complex situations, we have the knowledge to handle your transaction professionally.
Direct Buyer = Better Prices: Without broker commissions eating into your proceeds, you keep more money. Our offers represent what we're willing to pay, period — no hidden fees or deductions.
Regional Knowledge: We understand South Texas. The Rio Grande Valley, the border economy, ranch land values, colonia properties — we've bought notes on all these property types and know how to value them fairly.
Financial Strength: With up to $5 million per month available for note purchases, we have the capacity to close quickly and handle notes of any size. You won't hear "we need to find funding" from us.
Personal Service: When you call, you talk to George. When you have questions, George answers them. We're not a faceless corporation — we're real people who care about providing excellent service.
Frequently Asked Questions
How quickly can you close on a South Texas land note?
Most transactions close within 2-3 weeks. For urgent situations, we can often close in as little as 7 days. The timeline depends partly on how quickly we can verify documentation and complete due diligence, but we work efficiently to get you paid as fast as possible.
Do you buy notes on properties in colonias?
Yes, we purchase notes secured by colonia properties throughout South Texas. These properties are evaluated based on their specific characteristics, location, and improvements. While some buyers avoid colonia notes, our experience in the region allows us to make fair offers on these notes.
What if my buyer has made some late payments but is currently paying?
A few late payments in the past don't necessarily disqualify your note. We look at the overall payment history and current status. Notes with some historical late payments may receive slightly different offers than pristine notes, but they're still very sellable.
Can I sell a land note if the property is agricultural or ranch land?
Absolutely. South Texas ranch and agricultural notes are common in our portfolio. We understand how to value these properties based on factors like acreage, improvements, access, water availability, and potential uses including hunting leases and mineral rights.
Do I need to notify my buyer that I'm selling the note?
The buyer will be notified as part of the closing process so they know where to send future payments. You don't need to contact them beforehand unless you prefer to do so. The sale of a note doesn't change the buyer's obligations — they simply continue making payments to the new note holder.
What's the minimum note size you'll purchase?
We consider notes of all sizes. While some buyers won't look at small-balance notes, we evaluate each note on its merits. If your note is smaller than average, we may still be able to make an attractive offer — just reach out and let us take a look.
How does selling affect my taxes?
The sale of a land note can trigger capital gains taxes depending on your basis and the sale price. We recommend consulting with a tax professional before completing any sale. Our tax implications guide provides an overview of considerations to discuss with your advisor.
What if I can't find all my original documents?
Don't worry — we can often work with title companies to reconstruct necessary documents from county records. While having complete original documentation is ideal, missing paperwork doesn't necessarily prevent a sale. Reach out and let us see what we can do.
Take the Next Step
Selling your South Texas land note is a significant decision, but it doesn't have to be a complicated one. With the right buyer — someone who understands the region, moves quickly, and pays fairly — you can convert your payment stream into immediate cash and move forward with confidence.
Longhorn Money Services has been helping Texas land note holders for over 42 years. We've bought thousands of notes across all 254 Texas counties, including extensive experience throughout South Texas. We understand the unique characteristics of this region and provide fair, competitive offers backed by the financial strength to close quickly.
Whether your property is in the Rio Grande Valley, the border corridor, the Coastal Bend, or the brush country, we're ready to evaluate your note and make an offer. There's no cost, no obligation, and no pressure — just honest assessment and straight dealing.
Ready to see what your South Texas land note is worth? Get My Offer now — free quote within 24 hours, and you could have cash in your account within weeks. Or call George directly at (210) 828-3573 to discuss your note today.