01 Dec Note Investment as the Best Real Estate Business
Note Investment as Potential Real Estate Busines
Are you into note investment? On some angle, one of the biggest advantages of note is no depreciation. You can sell your note according to the current market value but sometimes with discounts. When the real estate value is higher, your note will also have a higher value. When purchasing a note you don’t need to have qualifications or credit history unlike purchasing a property.
Many note sellers and buyers are not aware of these things. There are more advantages in note business that they do not know. If you are one of them, below are the other advantages of investing in a note. Read them now.
Note Investment Advantages
Note investment has a secured lien which is the property with equity. It involves little to moderate risk because even on foreclosure, you can recoup your investment. However, if its unsecured lien, you can file a case and chase the borrower. You can also recover the missed payments, attorney fees, late fees and any payments at the future. The collateral can be any commercial, residential, construction, mobile home or any rehab projects.
When it comes to Real Estate Investing notes and mortgages, have returns rather than looking out for a property. Non-performing loans can be sold at a discounted price which can range into 12 to 18%. In short, in note business, you make more money when you buy a note, and you make more when you rehab a note and sell it. This is unlike rehabbing a property. Take note, there is less competition when it comes to this business versus leashing or selling properties.
There are different opportunities you can do when owning a note. A private note deal, if you are the first mortgage, the amount you are getting most out of the property is 65% of the value. If you have purchased a second mortgage lower than the average price it has, it may also give you the opportunity to buy the first mortgage.
You can do anything with a note just like anything with a house. You can do wholesale with a note, and you can refine the pay history, credit repair, etc. The best of everything is you can rehab the note, make a non-performing loan to performing. As a note holder, you also have the option to sell the notes entirely or only the partial part. There is also an option that you can borrow from the note. This is called Collateral Assignment. This makes note business a versatile.
A note is easier to manage than property. As for investment, it is more a passive income. It is easier to hold a note on places you don’t like to own. You don’t need to take care of the property and tenants. Fix plumbing, maintenance and making sure the property is saleable always.
These are just a few of the advantages one can experience when they go into note business. You can find more along the way of venturing in this real estate investment. Just find the best private lender to negotiate with your business like Note Seekers. They are the reputable private lender that gives you the best deal out of your note. So, why start now?