How We Made a Fortune Investing in Real Estate Without all the Headaches of Being a Landlord
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?
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?
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.
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:
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:
Call 215-297-6460 to buy a real estate note or to learn more information. |
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