Why Invest In Notes

Note investing is being directly involved in the real estate industry without the traditional issues associated with being a landlord.

Return on Investment

THE GOOD OLD THREE T’s :

  1. TENANTS
  2.  TRASH
  3. TOILETS

Notes can pay double digit returns and are backed by real collateral. Your initial principle capital investment and interest is usually backed by collateral that has a homeowner in the property. They are protecting your collateral because they are buying the home for their own personal investment. Just like the home you live in now, you are taking care of it and making your payments on time to the bank so that you can keep your investment. The only difference here is that you are the bank, You own the note and the homeowner is paying you. Being the bank allows you to have passive income with a high rate of return without being a landlord. When was the last time you called your mortgage company with a clogged toilet and they came running right over to fix the problem?

Unlike the stock market where you have to constantly check every day to see if you made money or lost because of the fickle current business environment we live in today. Your initial principle investment that you made in the note will not change. What did the CEO say today? Will what he or she said or did today effect the price of the stock? You really have no control if you win or loose. You can only try to pick a stock that you think is a safe bet. With a note, you know the monthly passive income and the rate of return you will receive before you even make the investment. Try that with a stock..

Notes are also very versatile. They can bought and sold just like Real Estate but the time frame for the transaction is much quicker. A note assignment can be done in days when the buy-sell agreement is signed.

Just like real estate, you can wholesale a note to another investor. You can rehab a note, that is buying a non-performing note and working with the homeowner to start paying again thru a modification agreement. Once you have this note re-performing, it can be sold or you can keep for a long term investment. You can purchase a note and keep it long term for passive income every month just like you would if you were to purchase a rental property.

Notes are easier to work with. Once you have a note, the borrower will make their payments to a servicer who will take care of the escrow part of the payment for you . ( Taxes and Insurance) The remaining balance is sent to you. The servicer will also send out late payment notifications if for some reason the payment has not been made on time and most servicers will also call the borrower if need be. All you need to do is sit back and wait for the check, it’s called mailbox money.

If you would like to learn more on how you can invest in notes, CLICK HERE to fill out a short, confidential questionnaire. I will get back to you shortly to discuss the options available for passive income, that is safe and secure with great returns.