The Promissory Note is an important legal document that should be kept in a safe place, and here is why! The note is a promise to pay or IOU from the buyer, spelling out the amount and terms of repayment. In legal jargon it is known as a negotiable instrument. Similar to a check, the original must be presented to collect or prove ownership. If the seller desires to … [Read more...] about Safekeeping the Original Promissory Note
Note Buying Blog and Articles
Increase Value with Payment Histories
Keeping an accurate record of the payments received on the promissory note shows how much the buyer still owes along with their payment habits. Plus, note sellers can also improve the value of their note by providing a verifiable payment history to the investor! … [Read more...] about Increase Value with Payment Histories
What is Due Diligence?
Before a note investor will pay cash to a seller for future payments, they perform what is called “due diligence”. This is really just a fancy word for research. You can simplify the process by being prepared for these common requirements. … [Read more...] about What is Due Diligence?
Real Deal #142 – Balloon Note in Florida
Welcome to Note Investing Real Deals! It’s always easier to learn from real life so here we share information from actual owner financed transactions. Today, we're discussing a balloon note in Florida. It was a nice home in Florida with the seller asking $234,000. The buyer was eager to purchase the property and had saved almost 10% for a down … [Read more...] about Real Deal #142 – Balloon Note in Florida
Know Your Market
Marketing is THE KEY to success for any business. Successful note brokers can answer these four important marketing questions. 1. Who is my target audience? … [Read more...] about Know Your Market
Real Deal #141 – Bagel Business Note
Welcome to Real Deals! It’s always easier to learn from real life so here we share information from actual owner financed transactions. Dream of owning your own business? Seller financing helps many business owners reach this dream. Traditional bank financing can be difficult to obtain when the sale of a business does not include real estate. The Bagel Shop … [Read more...] about Real Deal #141 – Bagel Business Note
What’s the Big Deal with Note Rates?
The interest rate a seller agrees to accept when providing owner financing to the buyer has a large impact on the note’s value. Unfortunately, many sellers overlook this important decision. Here’s why the interest rate on a note is such a big deal. Inflation Fighter Each year it seems the cost to buy the basics just keeps going up. It’s not your imagination; it’s … [Read more...] about What’s the Big Deal with Note Rates?
The State of the Note Industry
Around the country real estate markets have softened leaving a glut of inventory, decreasing values, and extended marketing times. The result? More sellers are offering to finance a portion of the purchase price for the buyer in an effort to “Move that House”! While sellers are motivated, lenders on the other hand are hunkering down or running scared. In the face of the … [Read more...] about The State of the Note Industry
Using Retirement Accounts to Buy Notes and Real Estate
Tired of dismal stock returns and lack of control over your retirement funds? Many investors are accessing tax advantaged retirement funds to realize the security and returns offered through real estate and note investments. Through the power of self-directed retirement accounts, you can legally access IRA, 401(k), SEP or other retirement funds for alternatives to the … [Read more...] about Using Retirement Accounts to Buy Notes and Real Estate
Real Deal #140 – Profiting with a Small Balance Note
Welcome to Real Deals! It’s always easier to learn from real life so here we share information from actual owner financed transactions. Small balance notes are often passed over by larger institutional type investors. This provides high yielding investment opportunities for private investors and self-directed retirement accounts. This well-seasoned transaction involving an … [Read more...] about Real Deal #140 – Profiting with a Small Balance Note