Five Reasons To Invest In Real Estate Notes

Why would someone invest in real estate notes without a good reason? People need reasons…and good ones, for just about everything they do. Or, they should! I mean, if I said go invest in worm farms, or cotton-ball stuffed Teletubbies, you would certainly want to hear a couple of good reasons why your money should be there instead of someplace else right? Ok, here are five reasons I think you should [strongly] consider investing some of your money in real estate notes. Reason One – You … [Read more...]

3 Things You Can Do For Your Note Business Today

People like “to do” lists and frankly, they are pretty darn effective. You have something written out just waiting to be checked off with an emotional satisfying swipe of the pen. So, without any further delay, here are three things you can do TODAY that can move your note business forward. To Do Item #1 -  Write a letter to a potential referral source. Contact a real estate agent, CPA, attorney, title agent, escrow company, or other real estate professional. Tell them what you do and … [Read more...]

Should I Carry Back An Owner Financed Note?

If you are selling real estate, especially in this market, you might be approached by someone asking if you are willing to “Owner Finance” or consider a "Seller Carry-Back" note. Here are a few guidelines to consider... How Do You Make Money When Owner Financing? The whole concept behind seller financing is that you are acting like the bank. While that carries risk of receiving payment, you can also get a great return on your money. I tend to recommend that if you are going to carry back … [Read more...]

Do Some Investors Pay Par Pricing When Buying Mortgage Notes?

Recently we received a question in the Finding Cash Flow Notes training course related to “par pricing” or "discount" when buying mortgage notes. First off, here is the Note Broker Question… Hello and thank you two for all your help. My question is why would a note investor pay par for a note? I’ve been speaking with a person who helps their clients use OWC (Owner Will Carry). I was informed they are working with a note investor that is willing to buy a note for par. I don’t understand … [Read more...]

Will 2012 Be The Year For Real Estate Notes?

To understand the current market for real estate notes it helps to go back in time. Years ago the country was in a financial crisis. Gas was expensive. There were numerous political battles in Washington, DC. Houses were not selling. Interest rates were high. Wait…what? … [Read more...]

Five Tips To Keep Your Note Business Professional

Certainly the most popular question among note brokers (experienced and otherwise) is, “How can I find more notes?” What many people don’t ask is, “How can I have a professional note business?” The reason I think this is important is that one can impact the other. Keep you business professional and, surprisingly enough, some deals will actually find you. So, how do you make sure you have a “professional” image in the marketplace? Make sure you are following these... 5 Tips for a … [Read more...]

Should I Use a Full or Partial When Selling Mortgage Notes?

There are many options when selling owner-financed mortgage notes. How many options will be largely dictated by a note buyer’s underwriting components, such as seasoning on the note, down payment, equity, and the payer’s credit. You can usually sell the entire note, but perhaps just selling a specific number of payments is your best option. Deciding on whether to sell the full balance of the mortgage note or to consider a partial really comes down to three things. 3 Questions When Selling … [Read more...]

Calculating Cash Flow Notes and a Contest!

I have written before about how note buyers accelerate payments on cash flow notes. One such strategy was the Double Your Payment/Cut The Interest Rate in Half. Another method is to simply go for an Early Payment With Incentive. To this day, the following situation is still my favorite example of this method. It was late December and we were looking at a small note with a $10,000 balance. The payment was only $132.15 per month with a 10% interest rate and 120 payments left. The note … [Read more...]

How Note Buyers Can Accelerate Return

Holding or buying mortgage notes and want a quick way to accelerate your return? Sure, you can’t go back to your payer/buyer and tell them to mail more money or even increase their interest rate. Matter of fact, you purchased the note “subject to” all the terms and conditions already in place and can’t change a thing…unless the payer wants to change them! Try this… Offer the payer to cut the interest rate in half (face rate of the note) if they double their payment! Let’s say the … [Read more...]

The BIGGEST Mistake Investors Make When Buying Cash Flows

In 1996 I was in the room with some of the brightest investors of our time. They batted around terms and strategies that left my head spinning and my hand sore from writing down as many notes as possible. I distinctly remember, just before ending the day, someone (not me) made a comment that brought everything to an abrupt halt. “If I buy a note that pays for 10 years at 12%, I don’t have to worry about investing again for another 10 years.” What got me was the number of people that … [Read more...]