Preferred Note Investors
Larry Nein
Email:
Phone: 704-896-0104
Buyers Mortgage
Buyers' mortgage notes have taken more than their fair share of criticism, but these are largely from people who do not understand the intricacies of the system. For them, the whole idea of Buyers' mortgage notes has been of a get rich quick scheme that just does not work. They are right to think that - because if you wanted to get rich quick by buying mortgage notes you would fail - miserably. The main point of buying into the mortgage note industry is that it is a long term investment; you definitely will not become a millionaire overnight, but if you are prepared to wait, and to bide your time, then you could make some money.

If you are considering becoming a buyer of mortgage notes, you need to look long and hard at all the angles - you could make a profit if you are careful about the whole thing.

The first thing to take into consideration if you are thinking about Buyers' mortgage notes is just how much available cash you have to invest in your venture. If cash flow is going to be a problem, then forget it. If you will not be able to manage on a day to day basis without the money you are intending to plough into your new business, then forget it. If you have to borrow to be able to raise enough capital, then you know what you must do - forget it.

Mortgage note buying is a risky business, and so you must be able to totally finance it without wrecking your life if it goes pear shaped.

The key to success for this business is to do your homework thoroughly. The main risk that you run is that you will not receive the payments due to you and if that happens you may have to consider foreclosure, which as well as being thoroughly unpleasant for all concerned, is a guaranteed way of watching all of your money go down a drain.

To minimize this risk, you should do as many checks as you possibly can before you buy a mortgage note. Check the credit worthiness of the person paying the mortgage; make sure that no one else has any interest in the title; make sure that the property has substantial equity, and make sure that payments up until the point where you are getting involved are not in default.

If you have a property of your own that is fully paid for and that you are prepared to sell, you have a readymade option to create your own mortgage note. The purchasers of your property may have been considering going to a bank for their mortgage but perhaps you can give them better terms and so their money enriches you, rather than the bank. Naturally, they will have to check you out as much as you check them out before the legalities are sorted, and that dotted line is signed upon, but it is certainly an option worth considering.

As long as you realize that Buyers' mortgage notes mean that you are in it for the long haul, you could just turn a profit.



Full and Partial Sell Options Note Pricing: How much can you get for your note?
Steps involved with selling your note Online quote request