Real Estate Investors Association of Greater Cincinnati

Author: Tracy Z (1 articles found) - Clear Search

21 Tips to Read Before You Get Started Investing in Note


 “How do I get started investing in notes?”

That’s a question we hear daily from tired landlords, stressed out rehabbers, or the couple next door wanting to improve life for their family.

Own The Real Estate Or Be The Bank

There are differences between investing in real estate vs. mortgage notes. Rather than owning the property, you own the right to collect payments on a promissory note. You are the one receiving the payments.

If something needs fixed the owner has to do it. And like the bank, you also have the right to take the property back through foreclosure in the event of non-payment. If this happens you can then sell the property for cash or take back another note.

Of course most note investors would rather just earn their yield and have the note payoff as scheduled (or better yet, early)! After 25+ years of buying and selling seller financed notes there have been both wins and losses. If you are getting started here are my…

21 Tips for Investing In Real Estate Notes