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Buying Mortgage Notes
One of the best ways to see a great return on your money is to buy investments that return more than you invest in them. Mortgage notes is an excellent example that offers a stable cash flow with the backing of Real Estate. Having such an investment offers security not only in the short term but with longevity. Mortgage notes have been an option for investments longer than you or I have been alive. There is great potential and great security in this investment strategy for anybody who learns how to make it work for them.
If you are thinking about beginning or expanding your portfolio of mortgage notes there are a few things to think about of course. There are many types of notes you can invest in and many ways to procure them. You can find the notes after they have been created and purchase them at a discount that provides you with the amount of return you desire or you can create them or assist in creating them. If you own property or if you are planning on using real estate investing as a strategy to help you create notes then you can actually develop the perfect note through the sell of a property. Often this strategy provides one of the greatest opportunities for a return because you can obviously buy the property under value and sell it with owner financing at a much higher price. This offers several benefits worth talking about.
One of the obvious benefits of selling a property to create the cash flow is the fact that you control the entire process. You know what the property value is from the start. You know the condition of the property and not only do you know who will be making the payments, you choose them. It really does not get much better than that. This is a great strategy and if you are in the real estate investing niche anyway you know that this exit strategy is one that will help you get the house sold faster as well.
The other most common
The other most common way to aquire mortgage notes is to find those that are already created and buy them at a discounted rate thus offering you a similar return on your investment. This approach is often seen as a bit more challenging than creating a note but it does not have to be. There are many ways to find notes that perhaps you have not thought about. As a note investor it is important that you diversify and learn all options available to you. If you do this then you will have greater opportunities to grow your business. Here is a list of some common and some not so common ways to find notes already created or being created:
  • Direct mail advertising
  • Referral pipeline
  • Local classified ads
  • Online classified ads
  • Local search
  • Craigslist searches
  • Real estate site searches
  • Google alerts


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