Selling and buying real estate notes for sale is one aspect of real estate investing. Purchasing of notes is an investment vehicle that can generate great returns. Notes may not be the best vehicle for the new investor but the seasoned investors can do great here.
An important disclosure on notes: as great an investment vehicle as Notes can be, Notes do not satisfy the 2nd wealth building principle which is “deductions”. Real estate investors who know me know I prefer to have all 5 of the wealth building principles. But, if sound passive investment is at the top of your importance list, then purchasing Notes may be a great opportunity for you.
Purchasing Cash Flowing high performing Notes on properties with Equity and Growth
Yes, you can purchase individual notes on properties that generate you monthly cash flow. These are strong performing notes (being paid each and every month) while giving you instant equity position and 50% of the growth (appreciation) when the property is sold. You can also have say when the property gets sold. Alright, this one I may need to write an entire blog post about because this one is one of those win win deals I am always talking about.
Many of the notes purchased are Defaulted loans. With these notes, (homeowners are usually in financial trouble) when you purchase notes on a property in this situation you have many options and ways to make money. You can help the homeowner out and create a win win situation where the homeowner can make monthly payments (to you) that are lower than he currently has been paying, but a payment that is beneficial to you based on the price you paid for it. This creates cash flow for you.
Another way to make money is to help him restructure, help him acquire financing at a reduced rate. (This will put a chunk of fast cash in your pockets. With this you need to have equity in the property but hey if you do not you would never have purchased the note.
OK, let’s be honest, as the note holder you have foreclosure rights and you can play hardball and make money in many many fashions. Many techniques that can generate big bucks are are mostly win lose situations and we do not promote that here. To create great and sustainable wealth, you have to create the win win. No one builds and RETAINS wealth from creating wins for you and loss for the other guy.
If you are seasoned investor who would like to find out more about the real estate notes for sale that we have access to right now, give us a call today 941-718-7761.