• Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to footer
  • Join Us at the 5th Annual Cash Flow Expo – Click Here
NoteInvestor.com Logo with House next to words

Note Investor

How to buy, sell, broker or invest in private mortgage notes for cash flow!

Your #1 Source For
Note Investing Information!

  • Home
  • About
  • Articles
    • Notes 101
    • Note Brokers
    • Note Buyers
    • Real Deals
    • Seller’s Corner
    • Cash Flow Business
  • Learn
    • Sell Your Mortgage Note
    • Note Broker Training
    • How To Buy Notes
    • Note Buyers Directory
    • Creating Notes With Seller Financing
    • Note Investing 101 Series Videos
  • Bookstore
  • Contact

Should You Work with Private Investors?

February 24, 2009 by Fred Rewey Leave a Comment

With the stock market plummeting by the minute, you may have a few friends, business associates, or relatives asking more about notes – specifically investing in them. 

There is no question investing in notes can be a very lucrative venture. If you have your own money you can receive a great yield. If you don’t have your own capital, you can “broker” the deal to a Funder for a nice referral fee or commission. Private investors however are in a category by themselves. 

First off, if you were to sell a note to a private investor (say a family member or friend), you can’t help but feel a bit more obligated that everything goes well. While it may not be a legal obligation, it can certainly stir feelings of personal responsibility.  If the payer misses some payments you will no doubt be on the phone on behalf of the note holder trying to work out a deal. Is this really what you signed up for when you thought of tapping into all that “private money?” 

If you want to continue on the path of selling to private investors, here are three quick questions to ask yourself. 

1. Can you get the same amount (or close) by selling the note to a traditional Funder? If so, sell to the professional corporate Funder versus a private investor. 

2. Is the private investor “sophisticated?” In other words, do they already invest in notes and fully realize the risk? 

3. Is anyone in the transaction a family member? Avoid family and friends. Really, what is the upside? 

With that said, there are plenty of sophisticated private investors out there that purchase notes on a regular basis. Make sure they understand the risks and all documentation goes directly in their name. 

Filed Under: Note Brokers Tagged With: Broker Mortgage Note, how to sell notes, private mortgage note, sell mortgage note, should I work with a private investor?

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

Learn Real Estate Notes

Click the reports below to download your FREE copy of 5 Ways to Cash in on Notes AND a BONUS!

Search This Site

More to See

Investing Notes Risk

21 Tips To Read Before You Get Started Investing in Notes

Note Buyers Directory 2018 by NoteInvestor.com

Selling Mortgage Notes? Find the Right Note Buyer!

Learn Note Business

Learn the Note Business in 60 Seconds?

Cash Flow Notes Business Truth

5 Myths About the Cash Flow Notes Business

Most Read Note Buying Info

How To Buy Mortgage Notes
Creating Notes With Seller Financing
Note Broker Training
Get Direct With Note Buyers Directory
How Can I Find Cash Flow Notes?
Buying and Selling Notes For Residual Income
How Dodd Frank Mortgage Laws Apply to Seller Financing
How To Calculate Cash Flow Notes
Note Investing 101 Series Videos
Best of Notes 2022

Connect With Us

  • Facebook
  • Instagram
  • LinkedIn
  • Twitter
  • YouTube

Footer

Places to Visit

  • Creating Notes
  • How To Buy Notes
  • Note Broker Training
  • Note Buyers Directory
  • Sell Your Note
  • Bookstore

We Are Here to Help

Photo of Fred Rewey and Tracy Z of NoteInvestor.com
Fred Rewey & Tracy Z NoteInvestor.com

Receive the Note Investor Newsletter

COPYRIGHT © 2008-2021 NOTE INVESTOR | PRIVACY POLICY | CONTACT US
This website is for informational purposes. This is not an offer to sell or purchase any security. Nothing is intended as legal, financial or investment advice. Any historical data represents past performance and does not guarantee future results.