Quick Go-To Guide For Note Investing
What is a Mortgage Note or a “Note?”
The borrower's written agreement to pay back the Mortgage, spelling out the terms and conditions of the mortgage.
What does it mean to Invest in a “Note?”
Buying the loan from the original Lender like a Bank or Mortgage Company. Instead of the bank collecting payments, you become the Bank!
Who can Invest in a “Note?”
Anyone with some extra cash or retirement money like a Self-Directed 401(k) or IRA.
What is a “Private Lender”/ “Lender”/ “Money Partner?”
Someone who lends their money under certain conditions with the expectation of earning a return or making more money.
Why are Notes a Good Investment?
1. To earn Passive Income
2. To Build a Better Future for You and Your Family
How is my Investment Protected or Secured?
With legal documents that are recorded in the County, in the Lender’s Name, and in the County where they live.
Why do banks sell “Notes?”
To get cash, lower their risk, and stay financially healthy.
What type of Notes can I Invest in?”
Performing Note: A Mortgage that's being paid as expected
Non-performing Note: A Mortgage that is not being paid as agreed or when payments are 90 days or more past due.
***Both earn a Great ROI***
How much time does a person invest in a “Note?”
(This varies a lot) It depends on the amount of time left on the life of the loan. However, if the Lender needs to exit the deal, they can work with their Investor to come up with the best Exit Strategy.