When someone says they are holding a note on a property, what does that mean? Is that for residential and commercial?
When you borrow money and use property as collateral.
That’s a note. Your mortgage on your house is a note.
It does not matter if it is residential or commercial.
If you want to get technical. When you take out a mortgage in Indiana. You have a note and a mortgage.
The note says that you are borrowing the money at a certain rate and that you will pay it back in so many monthly payments. The mortgage is a lot more pages. It is the paper work that gives the mortgage company the right to take your property if you fail to make your payments. :-\
Take “note” of the Investing Glossary to the left. ;D
Actually, the note is a written promise to repay a certain amount of money at a certain rate over a certain amount of time. The mortgage is the instrument that places a lien agaist the property that you have pledged as collateral for the loan.
www.wikipedia.com is a nice reference.