Sell Your Lakefront Land Note in Texas — What You Need to Know

Texas is home to more than 190 major reservoirs and countless smaller lakes and impoundments, making lakefront property one of the most desirable and distinctive segments of the state's real estate market. If you hold a promissory note secured by lakefront land in Texas, you own a financial asset backed by a type of property that commands premium values driven by the irresistible combination of water access, scenic beauty, and recreational lifestyle. The decision to sell your lakefront land note in Texas can convert years of future payments into immediate cash, and understanding the unique dynamics of lakefront property valuation will help you get the best possible return when you sell.

Lakefront land in Texas spans an enormous range of markets — from the luxury estates on Lake Travis and Lake Austin near the state capital to the family-oriented waterfront communities on Lake Conroe and Lake Livingston north of Houston, from the Hill Country charm of Canyon Lake and Inks Lake to the wide-open waters of Lake Texoma on the Oklahoma border. Each lake has its own character, its own price points, and its own set of factors that drive property values. What all lakefront properties share is the fundamental appeal of direct water access — the ability to walk from your land to the lake, launch a boat from your own dock, fish from your own shoreline, and enjoy the sunset over the water from your own property. This appeal creates a demand premium that sets lakefront land apart from inland property and that directly influences the value of notes secured by lakefront parcels.

Whether your note is backed by a lot on one of Texas's premier lakes near Austin, Houston, or Dallas, a quiet parcel on a lesser-known East Texas reservoir, or a riverfront property that offers similar waterfront appeal, this guide covers everything you need to know about selling your lakefront land note in Texas and getting the most value from your unique asset.

What Makes Lakefront Land Special as Note Collateral

Lakefront property occupies a premium position in the Texas real estate market, and the factors that drive its value are distinct from those that apply to inland property. Understanding these unique characteristics will help you present your note effectively and work with buyers who appreciate the waterfront premium.

The Waterfront Premium

The most fundamental characteristic of lakefront property is the waterfront premium — the additional value that direct water access adds to a parcel compared to similar inland property. In the Texas market, this premium can be dramatic. A lakefront lot on a desirable lake might be worth two, three, or even five times as much as a comparable lot just a few hundred yards from the water. This premium reflects the scarcity of lakefront property (every lake has a finite shoreline), the strong demand from buyers seeking waterfront living, and the lifestyle benefits that direct water access provides. For note holders, the waterfront premium is a significant positive because it inflates the property's value relative to the note balance, typically resulting in a favorable loan-to-value ratio that supports better pricing when the note is sold.

Lake Quality and Reputation

Not all Texas lakes are created equal, and the specific lake where your property is located has a major impact on its value. Texas's premium lakes — Lake Travis, Lake Austin, and Lake LBJ in the Highland Lakes chain, Lake Conroe near Houston, Lake Texoma near Dallas, and Canyon Lake in the Hill Country — command the highest waterfront property values because they combine large water bodies, reliable water levels, excellent recreational opportunities, and proximity to major metropolitan areas. Smaller or more remote lakes may offer similar natural beauty but lack the metropolitan proximity and developed infrastructure that drive the highest values. The buyer will assess your property within the context of its specific lake market, and the reputation and desirability of the lake is one of the most significant factors in the valuation.

Water Level Reliability

Water level reliability is a critical factor for lakefront property values in Texas, a state where drought can significantly reduce reservoir levels and leave "lakefront" properties stranded far from the water's edge. Lakes that are fed by reliable water sources and managed by authorities committed to maintaining recreational pool levels tend to hold their waterfront premiums even during drought periods. Lakes that experience dramatic water level fluctuations, or that have been at reduced levels for extended periods, may see their waterfront premiums erode as buyers become uncertain about the long-term reliability of water access. If your property is on a lake with a history of stable water levels, this reliability is a positive factor that you should communicate to the buyer. If the lake has experienced water level issues, being transparent about the situation and its potential impact on property values is important for an honest transaction.

Dock Rights and Water Access

For lakefront property, the specifics of water access can dramatically affect value. Properties with existing boat docks, dock permits, or the ability to obtain dock permits are worth significantly more than properties that have shoreline but cannot build a dock due to regulatory restrictions, steep terrain, or environmental protections. The type of dock permitted — floating, fixed, covered, or open — and the size limitations imposed by the managing authority also factor into the valuation. Properties with boat ramps, swim areas, and gentle shoreline slopes that provide easy access to the water are valued more highly than properties with steep bluffs, rocky shores, or limited usable waterfront. If your property has a dock, a dock permit, or favorable water access characteristics, documenting these features thoroughly is essential for supporting the best possible note valuation.

How to Sell Your Lakefront Land Note in Texas

Selling a lakefront land note follows the same general process as selling any Texas land note, with additional emphasis on documenting the waterfront-specific features that drive the property's premium value.

Build a Water-Focused Document Package

Start with the standard documents — promissory note, deed of trust, payment history, title insurance, and amendments — and then add materials that capture the property's waterfront value. Essential additions include documentation of dock rights or dock permits, a survey showing the property's relationship to the shoreline and any waterfront setback requirements, photos showing the water access and any existing dock or waterfront improvements, information about the managing authority's rules for shoreline use and dock construction, and any documentation of the lake's water level history and reliability. If the property is in a waterfront community with an HOA, include the HOA documents and any information about shared amenities like community docks, boat ramps, or swim areas. For the standard note document checklist, refer to this resource on documents needed to sell a land note in Texas.

Choose a Buyer with Lakefront Experience

Lakefront property valuation requires specialized knowledge that goes beyond standard real estate appraisal. The buyer needs to understand how waterfront premiums work on specific Texas lakes, how dock rights and water access affect value, how water level reliability influences long-term desirability, and how the various managing authorities (including the U.S. Army Corps of Engineers, the Lower Colorado River Authority, and various river authorities) regulate shoreline use. A buyer who lacks this expertise may undervalue the waterfront premium or may be uncomfortable making an offer on a type of property they don't fully understand. Longhorn Note Buyers has been purchasing land notes across Texas since 2007, including lakefront notes on lakes throughout the state, and we have the experience to evaluate your waterfront property note with the accuracy it deserves.

Due Diligence for Lakefront Notes

The due diligence for lakefront notes includes the standard title search and payment verification, plus additional investigation into the waterfront-specific factors that drive the property's value. The buyer will verify the property's waterfront status on the survey, check for any easements or restrictions that affect shoreline use, confirm the status of any dock permits, and assess the current and historical water levels of the lake. The buyer will also use comparable sales of waterfront properties on the same lake to determine the property's current market value, which can be more challenging than valuing inland property because waterfront sales are less frequent and each property's water access characteristics are unique. The due diligence phase typically takes one to three weeks depending on the complexity of the waterfront factors and the availability of comparable sales data.

Closing and Payment

After due diligence, closing proceeds in the standard manner — assignment documents are prepared, signed, and recorded, and the buyer wires the purchase price. The total timeline from initial contact to funding is typically two to four weeks for lakefront notes with clear titles and well-documented waterfront features. Properties with more complex waterfront situations — such as disputed dock rights, shared access arrangements, or water level concerns — may require additional time to resolve.

What Note Buyers Look For in Lakefront Collateral

Note buyers evaluating lakefront notes apply the standard financial analysis along with a detailed assessment of the waterfront-specific attributes that drive the property's premium value.

Standard Note Factors

The interest rate, payment history, remaining balance, remaining term, and borrower performance are the foundation of every note valuation, and lakefront notes are no exception. A strong payment history with 24 or more months of seasoning is the most impactful factor you can present, regardless of the property type. Higher interest rates, standard amortizing structures, and shorter remaining terms all support better offers. These fundamentals apply equally to lakefront notes as to any other type. For a comprehensive overview, see this article on what determines note value in Texas.

Which Lake and Its Market Position

The specific lake where your property is located is the single most important property-related factor in the valuation. Texas's premier lakes — those with large water bodies, reliable levels, excellent recreational opportunities, and proximity to major metros — command the highest waterfront values and support the most favorable note pricing. The buyer will assess your property within the context of its lake's market, comparing it to other waterfront sales on the same lake to establish a fair value. Lakes with active real estate markets and abundant comparable sales data are easier to value, which generally leads to more confident and potentially more favorable offers.

Frontage, Access, and Dock Status

The specifics of the property's waterfront position matter enormously. The amount of water frontage, the usability of the shoreline, the slope of the terrain leading to the water, the depth of the water at the shoreline, the presence or potential for a dock, and the orientation of the lot relative to prevailing winds and sun all affect the property's desirability and value. A lot with 100 feet of gentle, sandy shoreline frontage and an existing covered boat dock is worth dramatically more than a lot with 30 feet of steep, rocky frontage and no dock rights. Note buyers will assess these characteristics carefully, and properties with superior water access will command premium valuations that support smaller discounts.

Flood Risk and Insurance

Lakefront properties, by their nature, are located near water, and many are in designated flood zones. Flood zone status is a factor that note buyers evaluate carefully because it affects insurance costs, property marketability, and the risk of damage from rising water levels. Properties that are well above the lake's high-water mark or that have been elevated to meet flood zone requirements are viewed more favorably than low-lying properties that are vulnerable to flooding during heavy rains or dam releases. If your property has a current elevation certificate, flood insurance, and documentation showing that it meets or exceeds the base flood elevation requirements, providing this information can support a more favorable assessment. Properties on lakes managed by the Army Corps of Engineers are subject to the Corps' flowage easement requirements, which can affect what can be built on the property and how close structures can be to the shoreline.

Texas's Major Lake Markets and Their Impact on Your Note

Texas's lake markets vary significantly in character, price points, and demand dynamics. Understanding your lake's market will help you set realistic expectations and present your note effectively.

The Highland Lakes Chain — Austin Area

The Highland Lakes chain — Lake Travis, Lake Austin, Lake LBJ, Inks Lake, and Buchanan Lake — represents the premium tier of the Texas lakefront market. Managed by the Lower Colorado River Authority, these lakes offer a combination of scenic Hill Country beauty, proximity to the Austin metro, and established waterfront communities that drive the highest lakefront property values in the state. Lake Travis is the largest and most popular, with waterfront home values reaching into the millions. Lake LBJ is known for its constant-level status, which eliminates the water level concerns that affect other Highland Lakes during drought. Notes backed by Highland Lakes property benefit from the premium values and strong demand that characterize this market, and well-documented notes on properties with good water access can command very favorable pricing.

Lake Conroe — Houston's Premier Lake

Lake Conroe, located in Montgomery County north of Houston, is the premier lake destination for the Houston metropolitan area. The lake offers more than 20,000 acres of water surface, making it large enough for power boating, sailing, and fishing, and its proximity to Houston makes it accessible for weekend use. Waterfront property values on Lake Conroe range from moderate for inland-facing lots to very high for prime waterfront estates. Notes backed by Lake Conroe waterfront property are well-received by buyers who understand the Houston-area lake market, with the specific valuation depending on the lot's water frontage, dock status, and position on the lake.

Canyon Lake — Hill Country Charm

Canyon Lake in Comal County offers a Hill Country lake experience that is distinct from the Highland Lakes. The lake's clear, deep water and scenic limestone bluffs create a natural beauty that attracts both permanent residents and weekend visitors. Canyon Lake's proximity to San Antonio and Austin adds to its appeal, and the surrounding community has developed a mix of waterfront homes, vacation rentals, and recreational amenities. Waterfront values on Canyon Lake are strong and have been appreciating as the broader New Braunfels and Comal County area has grown. Notes backed by Canyon Lake waterfront property benefit from the Hill Country premium and the steady demand driven by the dual-metro access.

Lake Texoma — North Texas's Favorite

Lake Texoma, straddling the Texas-Oklahoma border, is one of the largest reservoirs in the region and North Texas's primary lake destination. The lake is famous for its striped bass fishing and offers extensive recreational opportunities including boating, swimming, and camping. Waterfront property on the Texas side of Lake Texoma is generally more affordable than on the Highland Lakes or Lake Conroe, but values are solid and the demand from the Dallas-Fort Worth metro area is consistent. Notes backed by Lake Texoma property are sellable at moderate discounts, with the specific pricing reflecting the property's position on the lake and the quality of its water access.

East Texas Lakes — Value and Natural Beauty

East Texas is home to numerous lakes that offer waterfront living at more affordable price points than the premier Austin and Houston-area lakes. Lakes like Toledo Bend (on the Louisiana border), Sam Rayburn, Lake Livingston, Lake Palestine, and Lake Fork are popular with anglers and outdoor enthusiasts, and waterfront property on these lakes offers excellent value relative to the major metro lakes. Notes backed by East Texas lakefront property may face somewhat larger discounts due to the lower absolute values and the smaller buyer pools, but the strong recreational appeal and the affordability of the properties ensure that there is always a market for quality waterfront land in this region.

Understanding the Discount on Lakefront Land Notes

The discount on lakefront land notes varies widely depending on the specific lake, the property's waterfront characteristics, and the standard note factors.

Typical Discount Ranges

For performing lakefront land notes in Texas, discounts typically range from 10% to 30% of the remaining balance. Notes on premium lakes like Lake Travis, Lake LBJ, Lake Conroe, or Canyon Lake with strong payment histories and favorable terms will receive offers at the lower end of that range. Notes on smaller or more remote lakes, or those with less favorable water access characteristics, will face larger discounts. The wide range reflects the enormous variation in lakefront property values across the state and the different levels of market liquidity that each lake offers.

Maximizing Your Lakefront Note's Value

The waterfront premium that your property carries is your most powerful asset when selling the note, so documenting and communicating it effectively is essential. Provide detailed information about the property's water frontage, dock rights, water access quality, and any waterfront improvements. Include photos that show the property's relationship to the water and the quality of the views and access. Highlight the lake's reputation, recreational opportunities, and proximity to major metro areas. And, as always, ensure that your standard note documentation is complete, your borrower's payment history is well-documented, and you are working with a direct buyer who can evaluate the waterfront premium accurately. For a detailed discussion of discount factors, read this article about discounts when selling a land note in Texas.

Common Reasons to Sell a Lakefront Land Note

Lakefront land note holders sell for many reasons, and several motivations are particularly common in this market.

Capitalizing on Waterfront Appreciation

Lakefront property has historically been one of the strongest appreciating segments of the Texas real estate market, and many note holders recognize that the current value of their collateral is significantly higher than when the note was originated. Selling the note allows you to capture the benefit of this appreciation through a higher purchase price that reflects the improved LTV ratio. If your property's waterfront value has increased substantially since the note was created, now may be an excellent time to sell and lock in those gains.

Diversifying Away from a Single Asset

Holding a note on a lakefront property means that a significant portion of your wealth is concentrated in a single asset type in a single location. Selling the note and using the proceeds to diversify into other investments can reduce your overall risk and create a more balanced financial portfolio. This diversification motivation is particularly relevant for lakefront notes because waterfront property values can be affected by lake-specific events — drought, dam issues, environmental concerns, or changes in lake management — that don't affect other asset classes.

Eliminating Water Level Risk

For properties on lakes with variable water levels, the risk that a drought could reduce the lake level and erode the waterfront premium is a concern that some note holders prefer to transfer to a buyer. Texas's climate cycles include periodic droughts that can significantly reduce reservoir levels, and a property that is waterfront at normal pool may be hundreds of yards from the water during a severe drought. Selling the note transfers this water level risk to the buyer and gives you the certainty of cash regardless of future climate conditions.

Ready to Sell Your Note?

If you're ready to sell your lakefront land note in Texas, Longhorn Note Buyers has the experience, the capital, and the Texas lake market knowledge to provide you with a fair, competitive, and no-obligation cash offer. We've purchased more than $46 million in Texas land notes since 2007, including lakefront notes on lakes throughout the state, and our 100% close rate means that every offer we make is a genuine commitment to purchase. Our founder, Nick McFadin, has been buying notes since 1983, and our team understands the waterfront premium dynamics that drive lakefront property values across Texas's diverse lake markets.

We are a direct buyer — not a broker — which means no middlemen, no hidden fees, and no deals that fall apart between your quote and your closing. Whether your note is secured by a lot on Lake Travis, a parcel on Lake Conroe, a tract on Canyon Lake, waterfront on an East Texas reservoir, or any other lakefront property in the state, we can evaluate it accurately and provide a cash offer within 24 hours.

Call us today at (210) 828-3573 or visit longhornnotebuyers.com to request your free quote. Selling your lakefront land note in Texas puts immediate cash in your hands from one of the most desirable property types in the state, and Longhorn Note Buyers is here to make it happen.

Frequently Asked Questions About Selling a Lakefront Land Note in Texas

Does having a dock increase my note's value?

Yes, having an existing boat dock or a valid dock permit significantly increases the value of lakefront property and, by extension, the value of your note. A dock provides direct, convenient water access for boating, fishing, and swimming, which is one of the primary reasons people buy lakefront property. Properties with docks command substantial premiums over waterfront properties without docks, and note buyers recognize this premium in their collateral assessments. If your property has a dock, provide documentation including photos, the dock permit number, any conditions or restrictions on the permit, and information about the dock's condition and features.

How do water level fluctuations affect my note?

Water level fluctuations can affect lakefront property values and, consequently, your note's value. On lakes with reliable, constant water levels — such as Lake LBJ, which is maintained at a constant level by the LCRA — waterfront values are more stable because buyers have confidence that the lake will remain at their doorstep. On lakes with variable levels — including Lake Travis and many other Texas reservoirs that are subject to drought-related drawdowns — waterfront values can fluctuate as water levels rise and fall. Note buyers will consider the lake's water level history, the current level, and the long-term reliability of the water supply when assessing the collateral. If the lake is currently at or near its normal pool level, this is a positive factor. If the lake is significantly below normal, the buyer may apply a larger discount to account for the uncertainty about when full levels will return.

What if my lakefront property is in a gated community?

Lakefront properties in gated communities often command additional premiums due to the security, exclusivity, and shared amenities that gated developments offer. Community boat ramps, swim areas, fishing piers, and clubhouse facilities add to the waterfront experience and can enhance property values. Note buyers view gated community properties favorably because the community association maintains standards and amenities that support property values over time. If your property is in a gated lakefront community, provide documentation of the HOA, its amenities, dues structure, and any shared waterfront facilities.

Can I sell a note on property that is near a lake but not directly on the water?

Yes, notes backed by lake-area property that is not directly on the waterfront can be sold, though the property will not command the same premium as true waterfront property. Lake-view properties, properties with deeded access to community boat ramps or beaches, and properties within walking distance of the lake all carry some portion of the lake lifestyle premium, though less than properties with direct shoreline frontage. The buyer will assess the property based on its specific relationship to the lake and the nature of any water access available. Being clear about the property's position relative to the lake — and not overstating the waterfront connection — will help ensure an accurate and efficient evaluation.

How fast can I sell my lakefront land note?

The typical timeline for selling a lakefront land note is two to four weeks from initial contact to funding. The preliminary offer is provided within 24 hours. Due diligence, including verification of waterfront status, dock rights, and property valuation using lakefront comparable sales, takes one to three weeks. Closing is completed within a few business days after due diligence. Properties on well-known lakes with abundant comparable sales data and clear waterfront documentation tend to close at the faster end of the range, while properties on less active lake markets or with more complex waterfront situations may require additional time.