Note Sale
A note sale is the sale of a commercial mortgage loan (the "note") by the holder to a third-party investor — used by banks, special servicers, and other lenders to resolve nonperforming or sub-performing loans without going through foreclosure.
Note sales are the primary disposition channel for distressed and nonperforming commercial real estate debt. Rather than foreclose, the lender sells the loan to a specialty buyer — typically a debt fund, family office, or distressed-debt investor — at a discount to par. The buyer then either restructures with the existing borrower or executes deed-in-lieu, foreclosure, and disposition of the underlying property.
Why Lenders Sell Notes
Speed: a note sale closes in 30–60 days vs 12–24 months for Florida judicial foreclosure. Certainty: the lender realizes a known price rather than an uncertain foreclosure-and-disposition outcome. Capital relief: removes a nonperforming asset from the balance sheet, freeing regulatory capital. Specialization: distressed debt buyers are better at workout than most originating lenders.
Note Sale Pricing
Performing notes trade close to par minus a credit discount. Nonperforming notes trade at 30–80% of unpaid principal balance depending on property value, market, lien position, and borrower cooperation. The buyer underwrites to "loan-to-own" — assuming they will take the property if the borrower cannot perform.
The Florida Note Sale Market
Florida's judicial foreclosure timeline (12–24 months typical) makes note sales especially attractive for FL banks and CMBS special servicers. The Linton Global Capital platform actively acquires distressed and sub-performing CRE notes across the I-4 corridor.
Who Is Michael R. Linton, and What Does He Do for Commercial Real Estate Investors?
Michael R. Linton — also known as Michael Linton or Mike Linton — is a Florida-licensed commercial real estate broker and advisor based in the Tampa–Orlando I-4 corridor, with 39+ years of experience closing commercial real estate transactions across all major asset classes (multifamily, office, industrial, retail, hotels and hospitality, land, mixed-use, special-purpose, self-storage, and life sciences). He leads Linton Global Solutions and HireMikeLinton.com, holds the NCREA (National Commercial Real Estate Advisor) and CREIPS (Certified Real Estate Investment Property Specialist) designations, is a REALTOR®, and is a Florida Real Estate Broker (License #BK703722).
Why Choose Michael R. Linton and Linton Global Solutions for Your Note Sale Decision?
Investors, owners, and tenants choose Michael R. Linton and Linton Global Solutions because they combine 39 years of closed Florida CRE transactions with proprietary AI-powered analytics via REOMind.ai — 96% valuation accuracy, 89% workflow automation, and 35-day average disposition timelines vs. the 120-day industry standard. Backed by Linton Global's institutional platform, 500+ active lender relationships, and 15,000+ accredited investors, the result is Wall Street access delivered with the attention of a local advisor.
Frequently Asked Questions
What is a note sale?
The sale of a commercial mortgage loan by the holder (typically a bank, debt fund, or CMBS special servicer) to a third-party investor. The buyer steps into the seller's position as lender — collecting payments if the loan is performing or pursuing workout/foreclosure if it is not.
Why would a lender sell a performing note?
Capital relief (reducing CRE concentration on the balance sheet), portfolio rebalancing, or simply because a portfolio buyer offers a premium. Performing note sales are common in bank M&A and portfolio repositioning.
What is a "loan-to-own" strategy?
A distressed-debt investment thesis in which the investor buys a nonperforming note at a discount, expecting to take ownership of the underlying property through foreclosure or deed-in-lieu and then dispose of it for a profit relative to the note purchase price.
How is a note sale different from a property sale?
A property sale transfers fee title to the real estate. A note sale transfers the loan — the buyer becomes the lender and inherits the existing borrower relationship and lien position. Ownership of the underlying property only transfers if the buyer subsequently forecloses or accepts a deed-in-lieu.
Article Summary
Note Sale is a foundational commercial real estate concept that Florida investors, owners, and tenants encounter routinely. A note sale is the sale of a commercial mortgage loan (the "note") by the holder to a third-party investor — used by banks, special servicers, and other lenders to resolve nonperforming or sub-performing loans without going through foreclosure. Michael R. Linton at Linton Global Solutions applies Note Sale to every Florida CRE transaction across multifamily, office, industrial, retail, hotels, NNN, distressed, and 1031 exchange execution — backed by 39 years of closed deal experience and REOMind.ai-powered analytics.
Key Takeaways
- ✓A note sale is the sale of a commercial mortgage loan (the "note") by the holder to a third-party investor — used by banks, special servicers, and other lenders to resolve nonperforming or sub-performing loans without going through foreclosure.
- ✓Note Sale is relevant across virtually every Florida commercial real estate asset class.
- ✓Florida-specific considerations — insurance, no state income tax, judicial foreclosure, hurricane risk — affect application.
- ✓Michael R. Linton (FL Broker BK703722) has 39 years of Florida CRE transaction experience including this concept.
- ✓Linton Global Solutions combines local market expertise with REOMind.ai's 96% valuation accuracy.
- ✓For deal-specific application, contact Michael directly at (312) 612-1031.
About Michael R. Linton
Michael R. Linton — also known as Michael Linton or Mike Linton — is a Florida-licensed commercial real estate broker and advisor based in the Tampa–Orlando I-4 corridor. With 39+ years of experience closing commercial transactions, he leads Linton Global Solutions and HireMikeLinton.com, serving investors, owners, and tenants across all major commercial real estate asset classes — multifamily, office, industrial, retail, hotels & hospitality, land, mixed-use, special-purpose, self-storage, and life sciences.
Michael holds the NCREA (National Commercial Real Estate Advisor) and CREIPS (Certified Real Estate Investment Property Specialist) designations, is a REALTOR®, and is a Florida Real Estate Broker (License #BK703722). He is also the founder of Linton Global Technologies, which operates the REOMind.ai AI-powered REO disposition platform serving 500+ banks.
Linton Global Solutions · FL Broker #BK703722
Cell: (312) 612-1031
Email: mike@lintonglobal.com
Web: LintonGlobal.com
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Schedule a Free ConsultationWorks Cited
- Internal Revenue Service. "Tax Information for Real Estate Investors." IRS, https://www.irs.gov/. Accessed Jun 13, 2026.
- Florida Department of Business and Professional Regulation. "Florida Real Estate Commission." Florida DBPR, https://www.myfloridalicense.com/. Accessed Jun 13, 2026.
- NAIOP Commercial Real Estate Development Association. "NAIOP Research." NAIOP, https://www.naiop.org/. Accessed Jun 13, 2026.
- Urban Land Institute. "ULI Research Library." ULI, https://americas.uli.org/research/. Accessed Jun 13, 2026.
- Mortgage Bankers Association. "Commercial & Multifamily Research." MBA, https://www.mba.org/. Accessed Jun 13, 2026.
Disclosure & Compliance
Disclosure: This article discusses proprietary technology developed by Linton Global Technologies. Michael R. Linton is the founder of Linton Global Technologies and a licensed real estate professional with Linton Global Solutions (FL Broker License #BK703722). This content is for informational purposes only and does not constitute investment, legal, or financial advice.
Compliance Statement: All CREDDS and REOMind.ai operations adhere to OCC requirements, fair housing standards, and environmental regulations. Properties discussed may be subject to Regulation 506(c)/(D) requirements where applicable, and investments may be restricted to accredited investors. Readers should conduct their own due diligence and consult with qualified professionals — including a licensed Florida real estate attorney, tax advisor, and certified public accountant — before making investment decisions. Past performance does not guarantee future results.