Purchasing Small Notes Can Equal Big Profits

They say that good things come in small packages. When it comes to investing in real estate notes, this can be very true for several reasons. For starters, this is one of the only investment opportunities I know where you can get in at a low cost of entry. For example, you can purchase a small note or even part of a note. I am not a franchise expert, but I am pretty sure Wendy’s isn’t going to sell me part of a store. Sure you can purchase larger notes, but not everyone wants to … [Read more...]

New Year’s Goal Setting for Note Investors

As 2018 winds down, thoughts turn to 2019. There is no question that I am a big fan of goal setting for both short-term and long-term goals. At the end of each year, Tracy and I get together for an entire weekend and focus on what we want to accomplish the following year. The list is certainly not limited to ‘work’ related goals. Sure, that may be the majority of the list…and the primary purpose of the list, but personal goals are just as important. After all, life is about … [Read more...]

Risk vs Reward: What is Your Note Investing Hot Button?

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...]

5 Reasons I’m Going To Note Expo Nov 2-3, 2018

Let’s Meet in Dallas, Texas! I just accepted an invitation to attend the upcoming Note Expo 2018 Convention and hope you’ll join me in taking part of this event dedicated to real estate note investing. Click Here To Register For Note Expo! I don’t accept many offers to attend or speak at live events anymore because frankly there are very few high quality industry gatherings that can advance your business.  But I’m truly excited about this expo. So why this event? Here are 5 reasons … [Read more...]

Inflation & Recessions: Success Using Owner Financing

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...]

21 Tips To Read Before You Get Started Investing in Notes

“How do I get started investing in notes?” That’s a question we hear daily from tired landlords, stressed out rehabbers, or the couple next door wanting to improve life for their family. Own The Real Estate Or Be The Bank There are differences between investing in real estate vs. mortgage notes. Rather than owning the property, you own the right to collect payments on a promissory note. You are the one receiving the payments. If something needs fixed the owner has to do it.  And like the bank, … [Read more...]

Are You In The Note Business For The Wrong Reasons?

The act of buying privately held mortgage notes is a lot of things to a lot of different people. For some, it is a means of investing money and getting a good return on that investment. These ‘Investors’ prefer a predetermined return on investment, backed by real estate, without the hassles of owning real estate. Owning real estate, particularly rental properties, comes with tenants – which, even under the best of circumstances can become strained as the property needs upkeep. Nope, … [Read more...]

Estimating Real Estate Value When Buying Notes

In the words of many savvy real estate investors, “You make money when you buy a property not when you sell.” But when investing in notes we are not buying the property itself. Rather we are purchasing the right to receive the remaining payments.  However, the note payments are secured by a lien on the real estate.  If things go South and the payer stops making payments then you'll end up with the property. Whether buying real estate or investing in notes, it's crucial to know the current … [Read more...]

Calculating Early Payoff On A Partial Note Purchase Using TValue Software

One of the wonders of the note business is the ability to invest in notes with little or no cash of your own using the partial or tail-end structure.  But what happens when a note pays off early?  This week's guest author, Markus Mollica with TimeValue Software, explains how to calculate an early payoff on a partial note purchase using their TValue amortization software. Let’s say that my goal is to build cash flows for future retirement. However, over the next several years, I want to not … [Read more...]

Top 7 Note Investor Articles of 2013

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...]