If you hold a promissory note on a Texas property — whether it is a house, a piece of land, or a commercial building — you have an asset that can be sold for a lump sum of cash. Thousands of Texas note holders sell their promissory notes every year, converting a long-term stream of monthly payments into immediate liquidity.
This article covers what Texas note holders need to know about selling a promissory note in 2026, including the types of notes in demand, the role of land notes in the current market, how to choose the right buyer, and how to navigate the selling process with confidence.
What Is a Promissory Note in Real Estate?
In real estate, a promissory note is the legal document where the borrower promises to repay the loan under specific terms — including the principal amount, interest rate, payment schedule, and maturity date. The promissory note is the borrower's "I owe you," while the security instrument (a deed of trust in Texas, or a contract for deed) ties that obligation to a specific property.
When people talk about "selling a note," they are referring to the transfer of this promissory note — along with the associated security instrument — from the original note holder to a buyer. The note buyer then receives the future stream of payments from the borrower.
Why Texas Is a Major Market for Seller-Financed Notes
Several characteristics make Texas a particularly active market for seller-financed real estate transactions:
- Favorable legal framework — Texas uses deeds of trust with a power-of-sale clause, allowing non-judicial foreclosure. This streamlined process makes Texas notes attractive to buyers because the remedy for default is faster and less costly than in judicial foreclosure states.
- Large and diverse real estate market — Texas is the second-largest state by both area and population, with a wide range of property types from urban homes to rural land.
- Active land market — Texas has a significant market for seller-financed land sales, particularly in areas surrounding major metros and in rural counties where traditional bank financing may be harder to obtain.
- Strong demand for housing — Texas continues to attract residents and businesses, supporting property values and creating conditions where seller financing remains a practical option for many buyers.
Land Notes: A Significant Segment of the Texas Market
While residential mortgage notes have traditionally dominated the secondary note market, seller-financed land notes represent a significant opportunity in Texas. When a landowner sells acreage, a lot, or a rural tract and finances the purchase for the buyer, the resulting promissory note is a land note.
Land notes are common in Texas for several reasons. Many land transactions involve properties that do not qualify for traditional bank financing — raw land, unimproved lots, or small rural tracts. In these cases, seller financing is often the only practical option, resulting in a steady supply of new land notes entering the market.
Not all note buyers specialize in land notes, so working with a company that has specific experience in this area is important. Longhorn Money Services has been purchasing Texas land notes as a core part of its business for years, alongside mortgage notes, deeds of trust, and contracts for deed.
Choosing the Right Buyer: Direct Buyer vs. Broker vs. Bank
When selling your promissory note, you have several options. The following comparison outlines the key differences:
| Feature | Direct Note Buyer | Note Broker | Bank / Institutional |
|---|---|---|---|
| Who purchases | The company itself, using its own capital | A middleman who shops your note to third-party buyers | Large institutions with strict underwriting criteria |
| Fees / commissions | None — the offer is what you receive | Commission (typically 1–5%) deducted from proceeds | Varies; may include processing fees |
| Speed to close | Days to weeks | Weeks to months (depends on finding a buyer) | Weeks to months (bureaucratic process) |
| Note types accepted | Broad — including land notes, non-performing notes | Depends on what end-buyers will purchase | Narrow — typically only conforming residential notes |
| Personal service | Direct contact with decision-makers | Middleman layer between you and the buyer | Departmental — may deal with multiple representatives |
| Offer certainty | High — reputable direct buyers honor their quotes | Medium — final price depends on end-buyer | Medium — subject to underwriting approval |
Longhorn Money Services is a direct note buyer — the company purchases notes using its own capital, with no broker fees or commissions. "There is no middleman between you and your cash," says Sandra McFadin, Co-Founder & Partner of Longhorn Money Services.
How to Verify a Note Buyer Before Selling
Not all note buyers are equal. Before accepting an offer, verify that the buyer has a solid reputation and a history of closing deals as promised. Key things to look for include:
- How long has the company been in business?
- Are they accredited with the Better Business Bureau, and what is their rating?
- Do they have verifiable customer reviews or testimonials?
- Do they have a physical business address?
- Do they honor their quoted offers at closing?
Longhorn Money Services has been in business since 2007, holds a BBB A+ rating, operates from its office at 1250 NE Interstate 410 Loop, Suite 400, in San Antonio, Texas, and maintains a 100% close rate — meaning every offer they make is honored at closing.
The Selling Process Step by Step
At Longhorn Money Services, selling your promissory note follows a simple three-step process:
- Submit your note details — Provide basic information about your note through the online form or by calling (210) 828-3573. It takes about 60 seconds and requires no upfront paperwork.
- Receive a personal review and cash offer — The team personally reviews your note and provides a fair offer within 24 hours. No algorithms, no automated responses — real people looking at your specific situation.
- Close and get paid — Accept the offer and the company handles the rest. Funds are wired directly to you upon closing. The company's 100% close rate means the quoted offer is the final amount — no renegotiation at the closing table.
Frequently Asked Questions About Selling a Promissory Note
Can I sell a promissory note secured by land in Texas?
Yes. Longhorn Money Services purchases promissory notes secured by all types of Texas real estate, including raw land, improved lots, residential properties, and commercial properties. Land notes are a core part of the company's acquisition business.
How quickly can I close on selling my note?
At Longhorn Money Services, you receive a cash offer within 24 hours. Once you accept, closing can happen in days, not weeks. The timeline depends on title work and documentation, but the company is set up to move quickly.
What if my note has a balloon payment?
Notes with balloon payments can still be sold. The balloon payment structure will be factored into the offer price, as it introduces refinancing risk for the borrower. An experienced note buyer like Longhorn Money Services understands how to price these notes fairly.
Will the buyer contact my borrower?
During the due diligence process, the note buyer may need to verify certain information related to the borrower and the property. After the sale closes, the borrower will be notified that their payment should go to the new note holder. This is a standard and legally routine process.
Do I have to sell the entire note or can I sell part of it?
Both options are available. You can sell the entire note for a full lump sum, or you can sell a partial interest — a specific number of future payments — and retain the rest. Contact Longhorn Money Services at (210) 828-3573 to discuss which option is best for your situation.
Get Your Cash Offer Today
Whether you hold a promissory note secured by a home, a land tract, or commercial property anywhere in Texas, Longhorn Money Services has the experience and capital to make you a fair offer. With over 40 years of note-buying experience, $47 million+ in Texas notes purchased, and a 100% close rate backed by a BBB A+ rating, the company has the track record to give you confidence that the deal will close exactly as quoted.
Call (210) 828-3573 or visit longhornmoneyservices.com to submit your note details. You will receive a personal, no-obligation cash offer within 24 hours.
Sources
- Longhorn Money Services internal transaction data, 1983–2026.
- Better Business Bureau — Longhorn Money Services profile (A+ rating).
- Texas Property Code, Title 5 — Deeds of trust, contracts for deed, and foreclosure procedures.
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Longhorn Money Services — 40+ years of note-buying experience · Est. 2007