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...]
Think Only The Wealthy Can Purchase Notes? Think Again.
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When I first learned about purchasing notes it was a wild several weeks. I learned how to use a financial calculator, which in itself would forever change the way I looked at money. It was an easy decision to decide which side of the cash register I wanted to be on. Secondly, I learned about ‘flipping’ notes on to private investors and funders – people with money to purchase deals. In exchange, I would receive a handsome referral fee – costing me relatively nothing out of pocket. Lastly, I … [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...]
Increase Your Business 10x With Online Note Investing Tools
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Earlier this week at Note Expo 2016 it was standing room only in the info packed session on How To Increase Your Business 10x With Online Note Investing Tools. I was honored to give a repeat performance later that afternoon and want to say thanks to everyone that attended. As promised I’m sharing the presentation slides and some helpful links here in this follow up post. But first I want to say… What a great event! Congrats to Eddie Speed, Bob Repass, Susan DeLaGarza, Czarina Harris, and … [Read more...]
Split Payment Partial Rescues Note Purchase – Real Deal #153
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Welcome to Real Deals! It’s always easier to learn from real life so here we share note investing information from actual owner financed transactions. When the mortgage balance is greater than the property value a partial purchase can rescue the purchase of a seller financed note. Watch the video below and discover solutions to overcoming 3 challenges on this real deal in Texas. … [Read more...]
21 Tips To Read Before You Get Started Investing in Notes
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“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...]
Calculating Note Investments Using The 50-50 Partial
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When buying real estate notes you will surely encounter a seller that flat-out refuses to take a discount. You can try explaining the time value of money until you turn blue in the face or… provide a simple alternative. Offer to buy half the number of remaining payments for half the balance. Not only is the seller happy, the investor can receive an increased yield. Intrigued? Wondering how this all works? Watch this step-by-step video walk through of the 50-50 Partial from our How To … [Read more...]
Reliant Financial Gets Creative When Buying Notes
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Reliant Financial Inc. has been a principal buyer of seller-financed notes for over 18 years. We were honored to talk with David Krunic, Founder and President, on their current investment guidelines and referral programs. Generous with his time and known for his straightforward approach, you are sure to pick up valuable tips for brokering, selling, or investing in notes. What unique benefits does Reliant Financial provide? Dave Krunic: We are direct, fast, creative and flexible! 1. You will … [Read more...]
Do You Need Your Own Money To Buy Mortgage Notes?
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In what seems like a lifetime ago I learned a very important lesson about investing money. It doesn’t have to be yours. Which was good, because at the time, I didn’t have any money. Well, I had some money, but certainly nothing close enough to purchase my very own private mortgage note. Let me back up for a minute. If you have been cruising around this site, you are probably long since sold on... The Idea of Buying Mortgage Notes Why? … [Read more...]
The Dangerous Side of Buying Partials on Mortgage Notes
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Partials are a great tool in a note investor’s toolbox to mitigate risk, but partials do not completely eliminate your risk. A partial is simply a note investing strategy that enables you to reduce your risk and still get some of the upfront cash to your seller. The dangerous side of partials is that they can give you a false sense of comfort when buying mortgage notes. … [Read more...]
