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Condition and Serial Numbers

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I am new to the hobby and seek reliable answers to a few questions and apologize if my greenhorns show.


In US Federal Reserve Notes, what would warrant 'worth more than face value' when considering only the serial number as being a near solid, near binary, near radar etc? A dealer had told me 5 digits or more would carry a premium but only if it were in an uncirculated condition.

Is a Federal Reserve Note whose serial number is collectible but has pen marks, foriegn stamps or the like worth collecting or has it lost its value? What are those peculiar stamps? I have a solid 7s one dollar bill but it has a tiny red elephant. Can it be somehow removed and retain legitimacy?


Thank you in advance for your answer.


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