Buying and Selling Notes for Residual Income

Here's one reason to love real estate notes... surprise payoffs! For years we have been talking about the benefits of keeping some payments as residual income when buying, selling, or brokering notes. This is not just theory - it really works. Need proof? Just last month we were fortunate enough to get one of those surprise payoff checks for $57,569.28!  And that was on a note we sold back in May of 2000. Now before you start thinking this is some sort of easy overnight riches please … [Read more...]

Quoting Cash Flow Notes

When it comes to quoting and buying mortgage notes there are basically two camps of note brokers. One camp takes the “Quote on the Fly” approach, while the other has the “No Note, No Quote” mentality. … [Read more...]

Top 5 Ways to Buy Mortgage Notes

One of the things that make buying and selling notes so appealing is the multitude of ways an investor can purchase a note. Frankly, you are limited only by your imagination. Well, maybe imagination and reaching a desired yield. Here is a quick look at calculating the cash flow business that even those with math phobias will like. The Top 5 Ways to Buy Cash Flow Notes 1. FULL – A full is just that. Buying the entire note. If the seller has 322 payments remaining, the investor … [Read more...]

How to Calculate Interest Only Owner Finance Payments

Calculating the payment needed to cover just the interest on an owner-financed contract or promissory note is simple. Just follow three easy steps and avoid two common pitfalls. Follow 3 Easy Steps Step 1: Obtain the current principal balance and interest rate from the land contract or promissory note Step 2: Times the balance by the interest rate Step 3: Divide by 12 In fact it is so simple you don’t need the best financial calculator, any standard calculator will … [Read more...]