What is a Real Estate Note?

A real estate note is the contract between two parties that sets out the terms of the loan allowing one party to borrow the capital needed to purchase a property. The party providing the capital owns the real estate note and will receive payments on the loan. Real estate notes can be created in a variety of ways including promissory notes, land sale contracts, mortgages, or contracts. These contain the terms of repayment between the two parties.