Mortgage notes usually accompany the purchase of a house and are also referred to as real estate notes, or just notes to people in the note buying world. Note buyers realize these notes are nationwide mortgages, and that real estate investing is not limited to only buying and selling houses. Note buying provides another income stream in addition to regular tradition real estate investing. Most beginning real estate investors are not aware that notes can be bought, sold, and flipped just like houses.
A real estate note or mortgage note is a mortgage, deed of trust or any instrument used to express the terms for repayment of a specific amount of money secured with real property. Of course there are notes that are not back with real property such as promissory notes, contract for sale of goods, etc. For more in-depth information about the definition of a mortgage note visit Wikipedia or go to the Note Buyers FAQ website.
You will need a financial calculator and you will need to learn how to find the following: N- Number of payments, PMT-Payment amount, I-Interest, PV- Present Value, FV-Future Value, the mortgage amount, balloon amount due, how much the payments are worth to purchase, how much a balloon is worth to purchase, buying a certain number of payments, buying a part of a balloon, or any other scenario you can think of. After getting over the initial scare of using math to calculate notes, the information you need to learn is not that difficult. After all, once you supply the needed information, the calculator does all the calculations for you. A note buying calculator can be founded here.
A note can be purchased many different ways and some notes pay more than others. Listed below are some guidelines for buying notes and a buyer’s manual showing several examples.
Buy My Note Website
Note Buyer's Manual
Articles and resource materials
Notes are everywhere, in the newspapers, at the court house, at real estate investment clubs, and on various websites. If you look in the section where all the notices are you will find some listed. Most people don’t read this section because they don’t find anything that interest them. Well if you are an investor, there is a lot of information in this section that can make you money.
All mortgages are listed at the court house including the mortgages sellers took back helping buyers to purchase their home. Some states have automated their records, so you can access the information from home using a computer. This access of notes from the court house gives you an enormous number of note holders to contact.
If you like you can do it the old fashion way by going to a real estate investment club meeting. The most active investors and the organizer will know who has the notes. All you will need to do is ask. There may be a note investor scheduled for a presentation for you to listen too. Today, many investors are listing notes on the internet. Various websites have notes listed and all you need to do is find them to see what they have to offer. Listed below are websites that have notes posted on their site:
Note listings from ezinearticles.com
Website Mortgage Notes for Sale
There are mortgage notes, deeds of trusts, mobile home notes, promissory notes, business notes, structured settlements, annuities, and the lottery. Any payment made from an agreement between two people can be purchased or sold. Visit cascade funding's website for more information about the different types of notes.
Free quotes are usually available from anyone who buys notes. Here’s are some websites that provide free quotes:
No tenants to worry about.
No repairs have to be done.
Investment is usually backed by a building, land or tangible item.
Can sell part of the payments without losing ownership.
New investors have not been exposed to the note buying business, so they are unable to make money with notes.
Not as visible and available in the open market as a physical structure if you don’t know about notes.
Need to learn note buying math Purchase amounts vary according to the note and the investor.
Many websites provide free online quotes and a listing of the different types of notes they purchase inaddition to the real estate they buy.
The process for buying a note is usually outlined on the site along with where to find notes to buy. All you need to do is locate a willing seller, do the calculations and close the deal.
Remember real estate notes can be bought, sold, and flipped just like houses.
Return from mortgage notes to home