By note, it means a record of any idea/ideas, points and other aspects which are written down for future reference. It may also indicate a letter, message or even recording something by writing it on paper. It also means paying attention to something.
The definitions of note may include the following:
1. Observing or paying heed to something carefully.
2. Preserving/recording/taking down in writing.
3. Making a remark or mention of something.
4. A musical unit.
5. Any record, formal or informal.
6. Any explanation or comment.
7. Any reference.
8. A piece of paper.
9. A bond by the government or corporate with a maturity period.
A real estate note means that a down payment is made by a property buyer who gets a loan and then signs the note, promising the payment of a specified amount every month to the lender until the full repayment of the loan, with interest. A real estate note comes into play while buying property. This is also called a promissory note at times. It is a promise for payment of a specific amount for a particular duration for buying real estate, and is akin to a contract between the borrower and lender for any real estate deal. The real estate note is an agreement that is legally binding for the lender and buyer and has specific terms that should be upheld.
Real estate notes also denote investment options that are purchased by institutional and private investors alike. They are purchased at discounts, i.e. amounts lower than present note balances for offsetting the risks faced by the investor and also meeting requirements in terms of future investment returns. In the same manner, mortgage notes are those which are secured by mortgage loans.
