It’s got to do with Note brokering,
You can sell part of a note, generally the “front end of a note” or the “beginning payments of a note”.
It’s also called “selling the front end of a note on a partial”, it means that a seller is selling a portion of the early payments on a loan, the front end to another investor while still retaining ownership of the remaining payments on the loan later on or the back end.
This allows them to access immediate cash (large check) while still maintaining some future income stream from the loan.
Key points to remember
“Partial sale” this refers to selling only a part of the loan and not the entire note.
“Front end,” the initial payments of a loan are considered the front end and are usually worth more because they represent a higher percentage of the total loan amount.
Benefit for the seller, by selling the front end the seller gets a lump sum of cash up front while still receiving some future income from the remaining loan payments.
As an example, imagine a seller holds $100,000 loan with monthly payments for 30 years. They might choose to sell “so the front end of a partial end-quote by selling the first 5 years payments to another investor, while keeping the right to receive the payments for the remaining 25 years.
