Re: Mortgage Note Investing

How many of your real estate industry friends have ever done a “note” deal?

When I hear about note opportunities, it is music to my ears.

I’ve been waiting all week to use that line. I couldn’t resist.

Mortgage notes are everywhere around you. Most people think that only banks create mortgages. The reality is, a lot of wealthy people own “paper” on all types of property.

When wealthy people want to sell, well, just about anything, they know that they have a lot of options. Creating paper is simply one of the options.

Especially these days. The interest rates are so low at banks, if you have a chance to create “paper” (industry slang for a mortgage on a property) you can often get a much higher rate of return vs. a savings account. If they don’t need more cash, owner financing can be a great option.

But it doesn’t stop at houses.

Friends of mine have bought and sold cars, boats, land, apartment buildings, and even businesses and small companies – all using a wide variety of “owner financing.”

This creative process of owner financing will open your eyes to a whole new world of opportunity.

Our guest speaker this month at WREIA is a real go-getter. He is somebody who took a note class years ago and actually walked out the door and implemented what he had just learned.

You will be shocked to learn just how much of an opportunity there is in the note market. Some of his recent stories are nothing short of impressive.

It’s not just “mom and pop” that want to buy or sell notes. Banks, mortgage companies, hedge funds and private persons all are out here in the note markets – buying and selling every day. It’s a huge market.

Why are there so many people out here? Because it can be terrifically lucrative.

But – be aware. There are plenty of chances to make a mistake and you can screw up in this market. BIG time.

When you are out and about this weekend, maybe hanging out with friends or family – ask around and see if anyone has ever bought or sold something by creating a note for it.

Lots of us have done it. We are talking about the purchase of anything that allowed a buyer to pay over time versus paying all cash right now. Once you find someone, ask how the process worked for them.

Most people are surprised by how positive (and easy) the experience can be.

If you have been beating your head against a wall trying to make a deal work – having some additional knowledge could help you figure out a solution.