Sell performing notes.Buyers for the loans you made.

Who buys performing notes from hard money lenders?

Buyers of performing hard money and bridge notes are mostly credit funds, family offices and other investors that want short-term, first-lien real estate loans without originating them. On Lender Capital, those buyers are capital partners: each sets its own criteria (loan types, states, size, leverage, rate), sees only loans that fit, and reviews the full file before committing. Lender Capital is the platform between you; it is not a lender, a fund or a note buyer, and it never buys with its own money.

What counts as a performing note here?

For a loan sold after funding, the Master Loan Purchase Agreement every lender signs requires, at settlement, a current payment history with no payment more than 29 days late, now or at any time, and no default (or event that would become one). In practice that means loans that have paid as agreed since closing. If a loan has ever been 30 or more days late, has been modified after a default, or is past maturity, it isn’t a performing note, but you can still sell it, as is with the default disclosed: see sell non-performing notes. See performing note, non-performing note, sub-performing note and re-performing loan.

Which notes qualify?

How are performing notes priced?

A buyer of a performing note is buying the remaining payments, so price comes from the note rate against the yield the buyer wants, the remaining term, the leverage, the borrower and guarantor, and how complete the file is. Prices are quoted as a percentage of the unpaid principal balance: at par, a premium or a discount. You set an asking price in your submission, and the final price is the one you and the buying capital partner agree. Lender Capital doesn’t publish loan prices. Read how loan buyers price bridge and DSCR loans and bid-ask spread on notes.

What documents move with the sale?

At settlement the buyer receives the original note endorsed to it (with any allonge), an assignment of the mortgage or deed of trust, recorded within 10 business days after settlement, an assignment endorsement to the title policy, and the rest of the collateral file. A clean file with originals in hand is the fastest way to a sale.

What does it cost?

The sale fee is 0.75% of the purchased balance (0.50% for Preferred lenders), with a $2,500 minimum, paid through escrow at settlement and only if the sale closes. One fee, one payer: you by default, or the buying capital partner if you list the loan buyer-paid; both see who pays and the amount before accepting.

Selling a loan vs. placing the next one

Selling a performing note returns capital you already lent. For loans you haven’t closed yet, direct capital placement lets a capital partner fund the whole loan at closing, so you never put your own capital in. Compare both on the lenders page.

Frequently asked questions

Who buys performing notes from hard money lenders?

On Lender Capital, performing notes are bought by capital partners: mostly credit funds, family offices and private investors that want short-term, first-lien real estate loans. On Lender Capital they are capital partners: each sets its own criteria, sees only loans that fit, and buys the whole loan through an escrow agent. Lender Capital never buys with its own money.

What makes a note “performing” on Lender Capital?

For a Lender Capital loan sale, at settlement the payment history must show no payment now or ever more than 29 days late, and no default or event that would become one exists. That is the test in the Master Loan Purchase Agreement for loans sold after funding.

Can I sell non-performing or sub-performing notes?

Yes. Lenders can sell sub-performing and non-performing loans they originated through Lender Capital: the default is disclosed in full and the buyer buys the whole loan as is, with no buyback for the disclosed default. Non-performing loans go only to capital partners that buy them. See sell non-performing notes.

Can I sell a seller-financed note or land contract?

No: Lender Capital handles only loans originated by private and hard money lenders, sold by those lenders after they apply and are approved. Seller-financed or carry-back notes from individuals and land contracts are not accepted.

What does it cost to sell a note?

Lender Capital’s sale fee is 0.75% of the purchased balance (0.50% for Preferred lenders), with a $2,500 minimum, paid through escrow only if the sale closes. One fee, one payer: the seller by default, or the buyer if the loan is listed buyer-paid.

What are the size limits?

Lender Capital’s current platform limits are a current balance from $100,000 to $5,000,000 and no more than 75% of the property’s as-is value. Each capital partner can set narrower criteria.