Where Real Estate Investors Find House Deals with Clean Title and Make a Profit
HOUSE DEALS AMERICA
  • Front Page
  • About Us
  • House Deals
  • Notes for Sale
  • Coaching
  • Blog

How We Made a Fortune Investing in Real Estate Without all the Headaches of Being a Landlord


Our Real Estate Notes for Sale: 

december_2020_notes.docx
File Size: 15 kb
File Type: docx
Download File


The answer is by owning real estate notes.
 
If you are an experienced real estate note buyer then you already know the benefits of owning real estate notes.  If you are an affluent investor new to real estate notes then see the Education Section below to learn more.
 
Opportunities Your Financial Advisor Won’t Tell You About
 
Paul and I buy houses in several states via online auctions every month. These are bank owned houses that the banks just want to sell.  We use three strategies: (1) Buy, fix, and resell (2) Buy and resell as-is to a cash buyer (3) Buy and resell as-is to someone that needs financing.  We provide seller (owner) financing to the buyer that does not have the all money, since the bank won’t lend to them. 

For the houses that we sold via owner financing we either keep the real estate notes (i.e. be the bank) and collect all the payments until the note is paid off or we will re-sell the notes to real estate note investors such as yourself. We receive cash today for the note and you receive the income stream from the note. 
 
Have You Asked Yourself These Questions?
  1. Does it aggravate you that your money earns about ZERO percent in a savings account?
  2. Are you looking for assets that provide you a stream of income in retirement?
  3. How much are historic low interest rates preventing you from retiring or achieve your financial goals?
  4. Are low interested rates preventing you from living the lifestyle you want in retirement?
  5. Do you want to diversify your assets from just stocks and bonds?
 
Owning real estate notes could be the answer to your questions above. 

Today Add Yield to Your Portfolio – in a Zero Interest Rate World
 
Why invest in real estate notes? 
  1. It is investing in real estate without the HEADACHES!
    1. With With notes you can get monthly cash flow and have the potential to earn higher returns.  See my example in section.
    2. With real estate, as opposed to notes, it’s not as passive because of tenants, maintenance, contractors, townships, liability, etc.
  2. Most interest rates on seller financed notes range from 6% to 12%, compared to ZERO percent in a savings account
    1. Higher interest rates allow you to potentially increase your income and lifestyle -- more golf, traveling in style, etc.
  3. Many new note buyers are afraid if buyer (owner) stops paying
    1. When you buy a note the amount that is owed is a lot less than the as-is value of the property.
    2. Therefore, if the buyer (owner) misses any payments you can foreclose on them and take back the house
    3. There should be equity in the property, you already collected monthly payments, and now you can re-sell the property and cash out or create another note. 
  4. Provide yourself with other assets to better achieve your financial and retirement goals, unlike the average America simply investing in mutual funds
    1. Diversify your portfolio from just stocks and bonds

Picture
Below is our current real estate notes for sale or you can download our Excel file.    

The real estate notes are all residential properties, first position, and all are performing notes.  

​Call 215-297-6460 to buy a real estate note or to learn more information.  

december_2020_notes.docx
File Size: 15 kb
File Type: docx
Download File

Picture

​Education on Seller Financing, Notes, and How to Buy Notes
 
Seller (Owner) Financing with Deed and Mortgage
Seller (owner) financing is for the seller to deed property to the buyer, and the buyer to give a note and mortgage back to the seller.  The note is the buyer’s promise to pay, and includes the balance and interest to be paid. 
 
The deed transfers legal title to the property to the buyer.  The seller eliminates liability for claims against the property and has a mortgage secured receivable which can be sold to cash the seller out of the property. 
 
When you own a note, you are acting like a bank.  You are the one receiving payments.  If something needs to be fixed the buyer (owner) of the property has to fix it.  If the buyer (owner) stops making payments to you, you have the right to take the house back in the event of non-payments (just like a bank forecloses). 
 
 Why real estate notes?
Several surveys reveal that the average American is significantly short with their retirement and financial goals and most will rely heavily on Social Security. This means more people are working over the age of 65 and possibly never retiring today than ever before.
 
To be successful in your financial goals don’t do what the average person is doing…
So wandering down to your local bank and opening up a savings or money market account is just not going to pay off big. Average thinking is to save your hard-earned money into a regular retirement account (401k, IRA, etc.) and hope your retirement account is big enough by the time you retire.  The problem there is most of the time you only look at stock and bond funds. Remember 2001, 2007/2008 crashes?  If your retirement account decrease 50% in one year, you need 100% returns to get back to even the next year.
 
Traditional investing will probably leave you short based on all the surveys and research. You have specific goals for your retirement and chances are it is the ability to do things you want – without the worry of how to pay for it.
 
Today’s savvy investors know they need solid returns backed by secure assets they can control. This is one of big attractions to real estate note buying.
 
I am still reading but what about the risks?
There are risks with any kind of investment, even traditional investing such as stocks, bonds, commodities, etc.  Let’s walk through an example:
 
Let’s assume a property sold for $100,000, the buyer put down a $10,000 payment, and after the buyer did some cosmetic updates (new paint, carpet, and appliances) the property is worth $120,000.  The seller of the property carried back a note in the amount of $90,000 at 10% interest. The note would look like this:
 
  • 84 payments (7 year note) of $1,494.11 a month of principle and interest the seller receives
  • The note buyer has an opportunity to buy the note after 1 year has gone by (it could be any number of months, just an example)
  • That means there are 72 payments remaining
  • The current balance owed on the note would be $80,650.06
  • If you wanted to earn 12% on your investment you would pay $76,424.31 for the note
  • Let’s look at your risk now: The value of the property is $120,000 and you bought the note for $76,424.31.  That’s a lot of equity in the property.
  • If the buyer (owner) does not make payments, you have the same rights as the bank. You can foreclose and take the property back. You can then:
    • Resell:  say you sold it for $110,000 (property worth $120,000).  You made at least $35,000 plus any monthly payments you received along the way
    • Create another note and continuing receiving payments from the new buyer (owner)
    • Sell new note for cash
  • This is a simple example and there are certainly some other variables
 
Before a real estate note investor will pay cash to a seller for future payments, the real estate note investor should perform their own due diligence
When a real estate note investor makes an offer to purchase a note, it is subject to due diligence.   This enables the real estate note investor to verify the information provided, analyze, and confirm their offer.


Here are the most common items requested by investors prior to closing:
  • Copies of legal documents (Settlement Statement, Note and Mortgage, or Deed of Trust, etc.)
  • Real estate taxes
  • Proof of insurance on property
  • Payment history & verification of note balance
  • Title Insurance
  • Payoff statements for any property debts still owed by seller
  • Current Property Value & Photos
  • Additional items unique to the transaction

Call 215-297-6460 to buy a real estate note or to learn more information.  
Picture
Picture
Picture
JP Homes, Inc. 
National Real Estate Investors

sales@housedealsamerica.com
Office: 215-297-6460 
Fax: 215-646-7643
PO Box 121, Willow Grove, PA 19090


STAY CONNECTED