Want to learn more about a note you are buying? Talk to the person making the payments with a purchaser interview. You might be surprised by what you find out. What is a Purchaser Interview? A Purchaser Interview (PI for short) is a friendly conversation with the property buyer paying on the real estate note. It helps a note investor get to know the payer and the … [Read more...] about 3 Reasons Note Buyers Use Purchaser Interviews
note due diligence steps
Note Investing Red Flags: What to Watch Before You Buy
Note investing offers the potential for consistent cash flow and long-term returns—but only when deals are properly vetted. Performing or non-performing notes, overlooking key warning signs, can quickly turn a promising investment into a costly problem. The good news is that most bad deals leave clues. Detecting Note Investing Red Flags As a Note Buyer (or Broker), … [Read more...] about Note Investing Red Flags: What to Watch Before You Buy
5 Reasons Note Deals Can Go Bad
Let me start by saying these are things you DO NOT want to ignore when it comes to note deals. What do I mean? Well, there is a reason investing in private mortgage notes can be an excellent investment – you get all the benefits of investing in real estate without collecting rents, dealing with late-night phone calls, or costly repairs. That … [Read more...] about 5 Reasons Note Deals Can Go Bad
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 … [Read more...] about Estimating Real Estate Value When Buying Notes
What’s In Your Note Buyer Transaction Checklist?
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. Most investors use a transaction checklist that outlines the due diligence, underwriting process, and closing requirements. The Note Buyer … [Read more...] about What’s In Your Note Buyer Transaction Checklist?
