Mortgage Note Investing is such a sexy investment vehicle! In all seriousness an investor has so many options to invest their money and being comfortable to pull the trigger on any investment is a scary proposition. One thing I can tell you is that most of the wealth on the planet has been made through real estate investments. The one thing "they" didn't tell you is that the big banks and hedge funds have been on the paper side of the real estate investing world. Think about it... Have you ever heard of banks flipping houses or owning rental properties? Its interesting when you realize that a bank never has to deal with calls from tenants because of roof leaks or a broken appliance yet they have been earning great returns from real estate for years. You see, the bank doesn't actually own the house. The bank owns the Note which is an IOU document stating the terms of a loan. A different document called a Mortgage is a document used to pledge the real estate as collateral that the bank can take if the borrower doesn't adhere to the terms written in the Note.
When you decide to buy a note, you step into the shoes of the bank and the borrower pays their monthly mortgage payments to you every month. Being the bank puts the investor in the power position because notes provide 3 of the most important investing criteria that most savvy investors look for. 1. Safety, because the Note is backed by the collateral of the actual real estate so if the borrower doesn't pay the note investor can take the house. 2. Growth, because you get to collect interest every month. and 3. Cash Flow, because you receive payments every month. (Mail Box Money)
If you want to know more you can go to my website at www.thenotementor.com
You can also access my calendar link on my website if you wish to schedule a one on one call.
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