There’s a lot of talk about what’s going to happen if inflation starts to show up in our economy. With Owner Financing I have found you will not be affected negatively. The question is, “What is the market?” The CASH MARKET and OWNER FINANCE MARKET are two completely different markets. When the recession of 2008 hit I was able to take advantage of both markets. I took back 35% of my owner financed homes. I was able to recapture any appreciation that had happened from the time I bought … [Read more...]
Current Market Trends of Non Performing Notes (NPNs)
By
The non-performing notes sector has been booming after the market went into debt due to the recession in 2008 and 2009. Now, the banks are selling the non-performing notes rather than foreclosing on them. Maintaining real estate is not what the banks want and that’s why they are now willing to sell these non-performing notes at a discount. Let’s discuss what NPN’s are in case you are new to this type of investing. NPN’s are non-performing loan agreements, which became defaulted due to the … [Read more...]
Top 7 Note Investor Articles of 2013
By
2013 proved to be a year of “adaptation” and “advancement” for the note business. The note industry continued to recover and build as note brokers, investors, and professionals tweaked their marketing tactics and campaigns to adjust to the new real estate market and technology savvy sellers. As 2013 comes to an end, we wish you a Happy New Year and suggest you take a quick look at these posts. Read (or re-read) these as you get ready to plan 2014. The Top 7 Most Read Note Business … [Read more...]
Note Marketing: Two Out of Three Isn’t Bad
By
Actually, it was the topic of a speech that I gave years ago, but as I revisit it in my mind, it seems that nothing has changed much. The premise is simple. When creating and executing a marketing campaign, you have three choices. Speed – How fast you want to get to market (or react to current topical trends). Cost – How much (in dollars) the marketing will cost you (including the creation). Quality – How great the note marketing piece will look. Every one of them is very … [Read more...]
What’s In Your Note Buyer Transaction Checklist?
By
Congratulations! The seller has accepted your offer to buy their note payments. Now what? The 3 Phases of Note Buying The purchase of a private mortgage note goes through three main phases before closing and funding. First is the quote request. Next up is the preliminary approval process. Once a transaction has received preliminary approval it moves into the due diligence phase. This provides the investor time to verify important information including current taxes, insurance, clear … [Read more...]
Has Today’s Note Seller Really Changed?
By
The real estate market went up and crashed back down. Bank lending dried up faster than water in the salt flats and... Robert Downey, Jr. has made three Iron Man films. So, with all these things going on, and more, it begs the question: How is today’s note seller different? The answer may surprise you. Nothing. Nothing has changed in the motivation of why a note seller would like to sell a note. People only sell real estate notes for two reasons. Happy People… Happy people … [Read more...]
10 Mistakes Note Brokers Shouldn’t Make
By
What does it take to be successful brokering real estate notes? Start by avoiding these 10 Mistakes Note Brokers Shouldn't Make! Over the past two decades, I've had the benefit of seeing the note business from a wide perspective. From start-up home based broker to Assistant Vice President of Metropolitan Mortgage, President of the Cash Flow Association, and co-owner of Diversified Investment Services, I have participated as a broker, investor, and educator. I could spend hours discussing … [Read more...]
First Rule of Note Buying: It Is Never Too Late
By
The year is flying by, isn’t it? All those priority lists, New Year’s Day resolutions, To-Do Lists, and Post-It note quotes stuck around the house have all but been worn down by the everyday life. So, how are you doing on your goals? Are you on track or did “life” get in the way? The good news is that you can re-boot your business any time you want! This is only the midpoint of the year (Happy July 4th by the way) – and there is still time to pull it off! So, how do you get back on … [Read more...]
Can You Please Define Private Mortgage Notes?
By
Is there a difference between the definition of a private mortgage note and a seller financed note? Better yet, does it even matter? A recent subscriber's questions are answered. "I am getting confused with - what is a private mortgage note and a seller finance note. They both seem the same. A private mortgage note is a note that someone is holding on what was sold. A seller finance note sounds like the same thing to me - a note on property sold and is holding the note? What … [Read more...]
Five Reasons To Invest In Real Estate Notes
By
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...]
