Promissory Note Valuation

Phone: (808) 637-8480

Appraisal and Valuation of your Promissory Note

A Promissory Note Valuation or Appraisal is needed to determine the current market value of the note. There is no liquidity until the Promissory Note is sold or paid in full. Also, since there is no readily available market value, often IRA circumstances will require a Promissory Note appraisal or valuation. A valuation is also required when an IRA needs a IRA Valuation for distribution to personal ownership, Roth IRA conversion, and IRA Required Minimum Distribution (RMD) computations at age 70 1/2.

What is a Promissory Note?

A Promissory Note is a loan from one entity, the lender, to another entity, the borrower. The Promissory Note usually has a stated interest rate, a schedule a payments that often are interest only, but sometimes principal and interest, with a maturity date. A Promissory Note is often used as funding vehicle for an IRA (Individual Retirement Account) since they are simple in structure to set up and maintain, and the interest is tax deferred. A Promissory Note sometimes is collateralized with real estate.

The IRS, Dept. of Labor, and most auditors will only accept Valuations computed, and documented with supporting exhibits, from an independent expert. Valuations from the investor, the investment management, and the investment management's accounting firm, are not acceptable to the above agencies.


Equity Valuation Associates

Phone: (808) 637-8480

©2013 - Equity Valuation Associates (ERISA Valuation Associates)

Telephone: (808) 637-8480 Fax: (808) 637-8482

P.O. Box 91-1297    Waialua, O'ahu, Hawaii    96791