A partial land note sale in Texas allows you to sell a set number of future payments for a lump sum while retaining ownership of the remaining payments. This approach lets you access cash now without giving up your entire income stream. Longhorn Note Buyers, a San Antonio company that has been buying Texas notes since 1983 with more than $47 million purchased and a 100% close rate, provides same-day quotes and closes 100% of accepted offers with no fees.
This guide explains how partial note sales work in Texas, how they are priced, and when a partial sale makes more sense than selling the full note.
What Is a Full Sale?
You sell 100% of remaining payments and transfer the entire note to the buyer. You receive one lump sum and are completely done — no more collecting payments, no more risk.
- Best for: needing maximum cash now, tired of managing payments, or simplifying estate/divorce.
- Typical discount: higher (see discount guide).
What Is a Partial Sale?
You sell a specific number of future payments (e.g., next 60 out of 180) or a dollar amount. After the buyer collects those payments, the note reverts back to you and you resume receiving the remaining payments.
- Common structures: fixed number of payments, specific dollar amount, or percentage split.
- Best for: needing some cash now but wanting to keep long-term income or hedge against inflation.
Pros and Cons Comparison
| Factor | Full Sale | Partial Sale |
|---|---|---|
| Cash Upfront | Maximum possible | Lower (only for portion sold) |
| Future Income | None | Preserved after partial period |
| Discount | Higher (longer risk for buyer) | Lower (shorter buyer exposure) |
| Tax Impact | Full gain acceleration | Only portion sold taxed now (see tax guide) |
| Timeline | 2-4 weeks | Often faster (less due diligence) |
| Risk Transfer | Complete | Partial (you retain tail risk) |
How Partial Sales Affect Pricing and Discount
Partial sales typically price 5-15% better than full sales because the buyer's risk window is shorter.
- Example: $150K remaining balance, 180 payments left.
- Full sale: $105K cash (30% discount).
- Partial (next 72 payments): $60K cash (20% effective discount on portion).
Net: you get cash now + resume payments later. Related: full discount breakdown.
Tax Advantages of Partial Sales
Only the portion sold accelerates gain under installment rules — deferring tax on the retained part. This can significantly reduce immediate tax hit (details in tax implications guide).
When a Partial Sale Makes Sense
- Need $50K-$100K now but want to keep monthly income.
- Retirement planning: cash for immediate needs, retain future payments.
- Medical or family expenses without liquidating everything.
- Hedge: keep tail payments that may grow with property value.
- Divorce/inheritance: split asset without full sale.
When a Full Sale Is Better
- Maximum cash needed (new investment, debt payoff).
- Tired of being the bank or chasing payments.
- Concerned about long-term default risk.
- Estate simplification.
How We Structure Partial Sales
We customize almost any way:
- Fixed payments (next 84 months).
- Dollar amount ($75K worth of payments).
- Split payments (buyer gets 50% of each payment until paid off).
- Balloon partials or combinations.
Requires slightly more documentation but closes in similar timeline.
Real 2026 Examples
- Seller A: Needed $80K for home down payment → partial 96 payments → $80K cash, note reverted after 8 years.
- Seller B: Retired, wanted max cash → full sale → $140K lump sum.
- Seller C: Medical bills → partial $50K worth → lower tax, kept income.
Common Myths About Partial Sales
- Myth: "Partials are complicated" → We handle all paperwork.
- Myth: "Buyers don't do partials" → We do hundreds yearly.
- Myth: "Partials price much worse" → Actually better due to shorter risk.
Avoid pitfalls in our common mistakes guide.
Frequently Asked Questions
Can I really keep part of my note with a partial sale?
Yes — after the buyer collects the agreed portion, the note legally reverts to you and payments resume.
Do partial sales get better pricing?
Yes — typically 5-15% lower discount because the buyer's exposure is shorter.
Are partial sales more complicated?
Slightly more paperwork, but we handle everything. Closing timeline is similar or faster.
What tax advantage does a partial have?
Only the sold portion triggers gain acceleration — deferring tax on the rest.
Can I do multiple partials over time?
Yes — sell chunks as needed.
Is a partial better than a full sale?
Depends on your goals — partial preserves income, full maximizes cash and eliminates risk.
Do you buy partials on non-performing notes?
Case-by-case, but often yes with adjusted terms.
Not sure which option fits? Call Sandy Henderson at (210) 828-3573 or submit your note details — we'll model both full and partial scenarios for free.
No obligation · 24-hour response
Get a Cash Offer for Your Note
Whether you hold a mortgage note, land contract, or deed of trust anywhere in Texas — we'll give you a fair, personal offer within 24 hours.
Longhorn Note Buyers — 40+ years of note-buying experience · Est. 2007