Note Partials 101: Structure, Pricing, and What Happens If a Loan Defaults

In this episode of the Seller Finance and Creative Deals Podcast, Dan Deppen breaks down partials, one of the most talked about but least understood tools in note investing. Dan explains what a partial actually is (selling a defined chunk of future loan payments at a set rate of return), walks through a real numbers example on a $30K land contract, and covers why partials can be a win for both sides of the deal.   Topics covered include why partials only work on performing loans, how sellers use them to recapitalize and scale without giving up the entire note, why buyers like the lower risk of front-end payments and the ability to get exposure to note investing with less capital, how to find partial buyers through your network rather than open marketplaces, typical interest rates sellers offer buyers, key structural decisions like who holds servicing and whether to sell full or fractional payments, and how defaults are typically handled when a partial is in place. Dan also shares an update on his Oklahoma City note portfolio acquisition and the current Note Accelerator cohort. Want to learn more about note investing, seller finance, or creative real estate deals? Check out Fusion Notes for coaching and courses, (www.fusionnotes.com) and Call The Underwriter (www.calltheunderwriter.com,) for flat-fee seller finance compliance and origination help. Note buying: www.fusionnotes.com Note origination and underwriting: www.calltheunderwriter.com Mortgage broker / DSCR servicers in TX, FL and CO: www.callthemortgageguy.com