Today we’ll be discussing how to make money by buying and selling mortgage notes! Though the transaction is fairly complicated, many banks and mortgage companies bundle mortgage notes. There are a ton of ways to invest in the real estate market. We won’t be able to cover all of them in this post, but we’ll go over the basics with this investment strategy. Let’s get started!
These are notes that are essentially paid on a fixed basis. Performing notes offer a dependable income stream to whoever is investing. These are often the source of seller-financed properties.
Non Performing Notes
This is known as a mortgage loan in which the borrower is not paying according to the terms of the note. Non-performing notes target borrowers who are behind at a minimum of 30 days on their mortgage.
Full Note Buying & Selling
Buying or selling a full note is another way to make money buying and selling mortgage notes. This type of transaction is for a full-time period of payments towards the remainder of the mortgage.
Partial Note Buying & Selling
There are partial notes, or a limited amount of months, to make money through payments on the mortgage. Once the end of the partial time period arrives, the note will then return back to the seller.
Working with individuals who are local investors is a great way to make money buying and selling mortgage notes! Since your local investors are familiar with your area, sellers can register a higher price due to the buyer’s comfortability with the investment.
When entering the world of mortgage note investments, be sure to invest your time and dedication when finding great deals. Don’t be shy to turn to those who have experience on their side. If you’re a note buyer who doesn’t seem to have the time or the knowledge to make connections, you may want to think about working with a full-time note broker to help sell your mortgage notes!