Estimating Real Estate Value When Buying Notes

In the words of many savvy real estate investors, “You make money when you buy a property not when you sell.” But when investing in notes we are not buying the property itself. Rather we are purchasing the right to receive the remaining payments.  However, the note payments are secured by a lien on the real estate.  If things go South and the payer stops making payments then you'll end up with the property. Whether buying real estate or investing in notes, it's crucial to know the current … [Read more...]

Buying and Selling Notes – What is the Current Property Value?

One of the considerations when buying and selling mortgage notes is knowing the current value of the home. After all, the property is the collateral and knowing its true value will greatly affect how much an investor will pay for a note. Historically this process was a bit easier, when everything was in an "up" market.  But with property values still on the downside or just recovering, it is often difficult to put a (safe) number on it. At least one that everyone agrees on. Although there … [Read more...]