Why In The World Do Sellers Offer Owner Financing?

Why would anyone who owns a piece of real estate outright ever consider taking on the role traditionally held by banks and agree to sell their property in exchange for a mortgage note payable to them over time? Why accept a promissory note instead of cash? Why in the world would sellers offer to owner finance? Owner Financing = Higher Interest Rate Potential One key benefit to a seller who opts to finance for the buyer is the potential for getting paid a much higher yield on their equity … [Read more...]

The Dangerous Side of Buying Partials on Mortgage Notes

Partials are a great tool in a note investor’s toolbox to mitigate risk, but partials do not completely eliminate your risk. A partial is simply a note investing strategy that enables you to reduce your risk and still get some of the upfront cash to your seller. The dangerous side of partials is that they can give you a false sense of comfort when buying mortgage notes. … [Read more...]

One of Our Favorite Note Buyer Purchases

One of the best investments we made as a note buyer happened a bit by accident. In 2008, we were contacted by a potential seller of a real estate note secured by productive farmland. He wanted to sell payments from his note to pay off his credit card debt. The details were roughly as follows: … [Read more...]

How to Buy Notes: Learning From My Worst Real Estate Note Investment

Wondering how to buy notes? Get some real life lessons learned from my worst real estate note investment! The note was secured by a small single family house in Arizona. … [Read more...]

How to Avoid Going Broke Buying Real Estate Notes

The most important thing you need to know how to do as a note buyer or investor is to properly analyze a promissory note investment when it first comes into your office so that you can either pursue the deal or pass quickly. Let me show you an overview of my 6 step analysis that I go through on every note we look at. … [Read more...]

How Note Buyers Protect Against Rising Interest Rates

I am sure you have heard that rising interest rates have a negative effect on real estate notes and I wanted to take a closer look at why. It is important to understand how rising interest rates affect your current notes and future note investments. … [Read more...]

Real Estate Note Investing: “Wow, That Sounds Risky!”

That is the reaction I generally get when I tell people what we do. Or sometimes they will respond with “Oh, that’s got to be tough right now.” Perhaps it is my answer, but mostly it is because many people’s perception has been clouded with everything they hear and read on the news about mortgages and foreclosures over the past few years. … [Read more...]

Investing in Real Estate Notes: Transitioning from Note Broker to Note Investor

Have you ever thought of buying and holding a real estate note for yourself instead of brokering it to an end investor? I strongly encourage you to do so as it can be a rewarding path in the note business. I initially began brokering notes in 2005 and in 2007/2008 made the transition from note broker to note investor. Here are some thoughts to keep in mind if you are looking to begin investing in notes to hold for yourself. … [Read more...]

Note Buyer Success Story

Canyon Capital has been added to the Directory of Owner Financed Note Buyers. Discover a new investor listing and read how the owner went from start-up note broker to note buyer in just a few short years. Note Investor (NI) recently interviewed Greg Gehlen (GG) to learn more about his note buying programs. Canyon Capital specializes in mobile homes on land and pays fees to cash flow brokers for the purchase of notes, trust deeds, and contracts. NI: What is the current focus of your … [Read more...]