It starts with a very direct question from your note seller. "Can I get full value for my note?" Right out of the gate, you have seemingly been boxed into a corner. It is a yes or no question, but in reality, very few note sellers will receive par pricing for their note. But they didn't ask for 100 cents on the dollar, did they? They asked if they could get 'full value' for their note. In either case, the response is most likely the same. You basically need to reply in a way that … [Read more...]
Risk vs Reward: What is Your Note Investing Hot Button?
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By now you have read an article or two (or ten) about the benefits of purchasing or brokering private notes. There is no debate that owning a cash flow can mean fewer headaches than actual real estate. But the advantages of becoming proficient in the note industry go well beyond just purchasing a note and getting a solid return. Here is just one of the really great features you won’t find at your local bank savings account… YOU Dictate The Terms Of The Note Investment. When you purchase … [Read more...]
Meet Note Buyer Troy Fullwood of Pinnacle Investments
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We are pleased to share this investor interview from the Directory of Note Buyers and introduce you to Troy Fullwood, owner of Pinnacle Investments. Troy learned the ropes flipping notes in the late 90s and then started buying notes in-house. Based in Arizona, Pinnacle Investments buys nationwide and will consider both performing and delinquent real estate notes that were created through seller financing or loan origination. What is the current investing focus of Pinnacle Investments? Troy … [Read more...]
Has Today’s Note Seller Really Changed?
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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...]
Rare Opportunity for Today’s Note Buyers: Small Mortgage Notes
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If you are just starting out in the note industry, and looking for great returns on your money, some cash in the bank certainly helps you get started as a note buyer. But what if you don’t have a lot of money to invest? What if you are just getting your feet off the ground, maybe saved a few bucks, but are certainly not “loaded” and looking to invest all your money in one big note? Small Mortgage Notes (with a rare opportunity). First off, small notes in general can often lead to bigger … [Read more...]
Five Reasons To Invest In Real Estate Notes
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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...]
First National Acceptance Company Buys Real Estate Notes Nationwide
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First National Acceptance Company has been buying real estate notes and land contracts for over 55 years! Located in East Lansing, Michigan, FNAC is a subsidiary of First National Bank of America with nationwide purchase programs for note holders and brokers. Gary Watkins, of the Wholesale Loan Trading division, shared their current buying guidelines in this NoteInvestor.com interview. What is the note investment focus of First National Acceptance Company? Buying Performing First Liens … [Read more...]
Private Note Industry: Become a Broker or Buyer?
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When considering participating in the private note industry, you may have been wondering exactly “how-to" participate. First off, let’s review the players involved a typical real estate note transaction and how to get involved. The Note Seller This is the person that holds the note, is receiving payments, and wishes to sell future payments for a lump sum of cash. The only way to be the Seller in this type of deal is to be holding or creating notes. You can do this by selling or flipping … [Read more...]
Self-Directed IRA Custodians Sued by Investors
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Watch out note buyers! The self-directed retirement account, a popular vehicle for purchasing notes, is under attack! Tired of dismal returns in the stock market many investors turned to buying real estate, private mortgage notes, and other alternative cash flows. They combined the power of high returns and compounding interest with the tax advantages of the IRA, Roth, Solo 401k, and other retirement accounts. The self-directed IRA has a designated custodian that handles the paperwork … [Read more...]
One of Our Favorite Note Buyer Purchases
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One of the best investments we made as a note buyer happened a bit by accident. In 2008, we were contacted by a potential seller of a real estate note secured by productive farmland. He wanted to sell payments from his note to pay off his credit card debt. The details were roughly as follows: … [Read more...]
