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 … [Read more...] about Purchasing Small Notes Can Equal Big Profits
When dealing with a mortgage note seller, what is the most important element of the negotiation process? The amount of the discount? How long it takes to fund? The reputation / credibility of your company? At the end of the day, it is none of the items listed above. Sure, some people will say “price” but the fact of the matter is the value of the note (your bid) is a … [Read more...] about The Good, Bad, and Ugly Note Sellers
Recently we received a question in the Finding Cash Flow Notes training course related to “par pricing” or "discount" when buying mortgage notes. First off, here is the Note Broker Question… Hello and thank you two for all your help. My question is why would a note investor pay par for a note? I’ve been speaking with a person who helps their clients use OWC (Owner Will … [Read more...] about Do Some Investors Pay Par Pricing When Buying Mortgage Notes?
Is the sticker shock just too much when discounting notes? It might be time to consider selling just some of the remaining payments. Note buyers have long used the partial purchase to reduce their exposure or investment risk, but it also has benefits for the seller. You see the time value of money makes payments due now more valuable than those further out in the … [Read more...] about How Partials Reduce Note Discount When Selling Mortgages
I will never forget the first time I was asked this question by a potential note seller. “Should I offer a discount to the payer before I try selling my note?” I was silent for what seemed like minutes. In reality, it was only a couple of seconds before I replied but during those seconds my mind was racing. Of course I was thinking... “If the note holder makes an offer to … [Read more...] about Sell Mortgage Note to the Payer? What about Me?!