How to Buy Mortgage Notes
Ryan DeMent
Turning the Sustainable Housing Space Upside Down | TRU Founder?? ??♂? ?? | Podcaster?? | Loan Officer @ NEXA NMLS#2494420| Impacting Lives & Changing Neighborhoods??
So what does this mean to you? Don t be average!
Interested in double-digit returns secured by real estate but without the headaches of the 3 T s (tenants, toilets, and trash)? Then it s a good time to discover how to buy mortgage notes!
Why Real Estate Notes?
Let’s face it. Wandering down to your local bank and opening up a savings or money market account is just not going to pay off big.
Traditional thinking is to sock away your hard-earned money into a regular retirement account and hope your nest egg is big enough by the time you retire.
The fact of the matter is that the most people are going to come up way short when they punch their final time card. A recent survey revealed the average baby boomer is half a million dollars short with 74% saying the will rely heavily on Social Security. The result? More people are working over the age of 65 today than ever before. (Source USA Today on Retirement Living).
Traditional investing will probably leave you short. You have specific goals for your retirement and chances are it is the ability to do things you want – without the worry of how to pay for it.
Today’s savvy investors know they need solid returns backed by secure assets they can control. This is one of big attractions to note buying.
But What About The Risk?
No question that there is risk with any kind of investment. Even traditional investing such as Real Estate, Gold, or a well-rated annuity has risks.
But people often confuse “risk” with “non-traditional” investing. In other words, just because you re not putting money in a FDIC insured savings does not mean you can’t minimize the risk of an alternative asset – with an even bigger yield on your investment.
What if you could invest in something familiar, set your own return, AND determine your level of risk? It may sound too good to be true, but that is exactly some of the benefits of purchasing private mortgage notes.
It s All In the Asset
Chances are, if you are like many investors that discover notes you may have enjoyed investing in real estate. In a good market you get
Turning the Sustainable Housing Space Upside Down | TRU Founder?? ??♂? ?? | Podcaster?? | Loan Officer @ NEXA NMLS#2494420| Impacting Lives & Changing Neighborhoods??
8 年Chris, Thanks for the comments. Yes, the posting is vague to spur conversation. With any investment the more you know about them the better you are off. NPN's are a great investment strategy due to the 9 different exut strategies you have. When we buy NPN's we perform a significant amount of DD on them. That being said when you are buying notes at 40-50% of the UPB and 30-40% of the CMV there is room to be creative with the homeowner. The challenge is the general public has been trained to look at buy and hold or fix and flip ideas. Why do you want to be the borrower when you can have all the benefits of the bank? We are not in the buiness of rehabbing houses. We rehabilitate homeowners and help them keep their American Dream alive! Please fee free to reach out to me if you have any further questions. Or e-mail directly at [email protected]. Talk soon!
Helping small business owners increase their profits by an average of $5-10k per year by focusing on what are your best profit centers, and reducing excessive expenses.
8 年Not a lot of meat here Ryan, kind of vague and general, and notes encompass so much, and have much risk. You can't set your return on non-performing ones, if they don't pay, you have to foreclose and then you are stuck with a worn out house that you have to rehab, or you will make little to no money. Having purchased over 30 notes in the last couple years, its not easy, there is so much to it and if you make a mistake, you can lose money. Performing notes are the safest way to go for investors, though there is no guarantee they will keep paying. You have to judge the risk of each one on its merits vs any potential reward.