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Why invest in mortgage notes?
Real estate investing has always been one of the safest ways to generate wealth but ever since the last housing bubble, there has been a real need for alternative real estate investing strategies. The most common form of real estate investor is a landlord. While this might sound like a passive income stream, just one bad tenant can easily turn it into a full-time job.
Taking care of the 3 T’s,(tenants, toilets and termites) is a major problem for all rental property owners but it isn’t the only way to generate a consistent cashflow from your property.
Real passive income
Owning the mortgage note allows you to be the bank and collect on the monthly mortgage payments without being responsible for the 3Ts. This is a truly passive form of real estate investment as you are entitled to collect mortgage payments for the duration of the loan. We have students still collecting regular payments from notes that they bought 20yrs ago! And in those 20yrs, they didn’t get a single phone call about a leaky roof, broken pipe or electrical problem.
Below market value real estate opportunities
Some note investors, buy mortgage notes just for the income while other’s buy then in order to foreclose and sell or rent out those properties. The majority of the properties you will find that are securing the mortgage notes will be well below market value. So even if your note defaults you are still secured by the value of the underlying property.
How to Get Started
On this page, you will find links to our best note investing guides, podcasts, videos and reports, including:
- How to invest in residential junior liens
- Whether you need a note broker license
- How to contact banks
- How buy commercial notes
- How to get investor funding and so much more…