Untold numbers of Americans are, in effect, acting as private bankers and lenders. They may have sold homes and provided the buyers with financing, in essence holding mortgages just as a commercial lender would. Instead of paying their mortgages to a bank, the homeowners pay their mortgages to the people from whom they bought their homes. Often, however, these individual private lenders find that their circumstances change, and that they need immediate cash for their real estate notes. Perhaps other joint ventures have gone poorly and they are facing bankruptcy, or maybe they want to make a large purchase and need liquidation options to improve their cash flows.

When this is the case, these private lenders often turn to professionals who act as brokers, finding investors who want to buy discounted notes and trust deeds. Although the investors pay less than face value for the real estate notes, the holders of the notes gain the advantage of being able to liquidate the paper asset and get immediate cash.

Real estate notes aren't the only type of notes that investors buy. They also buy mobile home paper - a promise to the seller that the new mobile home owner will send a monthly payment. Further, investors are interested in virtually any kind of promissory notes, which are basically any kind of IOUs. A note is simply a written promise to pay, along with the length of time the borrower has to pay the note, the interest rate of the note, and the amount of the note.

The broker will act as a go-between for the people who hold annuities, business notes, real estate notes, and other forms of promissory notes and a group of investors who are eager to buy those notes. Ideally, the broker provides premium support for people who need cash for their notes by personally connecting them to the cash sources they need to get the most cash quickly.

Many people who hold notes are relieved to receive cash for them, rather than having to wait for monthly payments year after year. After selling their notes, holders can buy their dream home, consolidate their debts, go on an exotic vacation, purchase a new car, or simply rest easier knowing that they have a cushion of cash should they fall on hard times.

Real estate notes are just the tip of the iceberg when it comes to selling notes for cash. It pays - literally - to explore your options if you have one or more promissory notes in your possession. The paper you hold could, indeed, be cash in the bank.