Buying Mortgage Notes for Better Investment Returns

With many people depending on the savings account as a pillow for their retirement structure, more and more people are usually left in turmoil. This is for the simple reason that the returns do not come out as planned, thus the dreams dreamt are often shuttered making more people depend more on the social security. However to be set apart from the rest investing in mortgage notes is just the way to go.


With a secondary investment pulled in for hard workers, one is sure to get in the desired amount of money needed for whatever they need. On the other hand in a good market, the mortgage notes bring in a boom from the marketed area. This literally means that tan increase in value of the area where the mortgage houses lay ensures that there are no decreases in the profits enjoyed. Acting as a private mortgage notes holder, one can minimize the risks that come in with the mortgages. This actually in facts means that the savings on the investment notes purchased are minimized as the said returns are set by the mortgage notes holder. This enables that the investment set is familiar and achievable, thus the chances of losing anything is significantly reduced. When it comes to non- payment and repeated defaults by the one living in the premises, repurchasing of the premises is allowed this way, one gets to enjoy the money and get their property back by and large. This creates room for reselling to another payer thus making another note if possible. If this is not possible selling for cash is another option and investing in another property can happen as and when wanted.


Just like any investment there are a number of risks involved when going on for mortgage notes. When it comes to risks, mortgage note owners find that they are the same as the returns. The most obvious is that the value of the asset so to speak does not go up. This literally means that in the years to come investment may go down and as that scared of many potential investors. However in the case of an influx in the market and an area is surveyed upwards the value may go up again. This can cause a reverse in the said returns and make them go higher even though the chances are usually unlikely. Another is getting a stable cash flow from the property. This usually comes in the form of rent. Since rent has to cover and be in excess of the mortgage and all its expenses. The risk comes in if the cash flow isn’t high enough making payments difficult on cover.

Since mortgage notes can also be bought in part, the entire risk is reduced even further making the purchase returns even more worth it. However when every potential Mortgage owner thinks about it, the returns would not come in handy if there were no risks involved. Ensuring that the mortgaged houses are in good and very hospitable conditions to live in, this way the rent will always be more than the required payments including the taxes and insurance. This in the end gives off good returns and stable security pillows that are far better than the traditional savings in accounts.

Today’s NPN Marketplace

The non-performing notes sector has been booming after the market went into debt due to the recession in 2008 and 2009. Now, the banks are selling the non-performing notes rather than foreclosing on them. Maintaining real estate is not what the banks want and that’s why they are now willing to sell these non-performing notes […]

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5 Reasons Owners Offer Seller Financing

Why would a seller allow a buyer to make payments over time for the purchase of property? Wouldn’t the seller rather get paid now and require the buyer to obtain a bank loan? Here are 5 reasons property owners offer seller financing: 1. Reduced Marketing Times What is the first thing a real estate agent […]

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Safekeeping the Original Mortgage Note

Can you easily locate the original mortgage note? This important legal document should be kept in a safe place, and here is why! The promissory note is a promise to pay or IOU from the property buyer. It spells out the amount due and terms of repayment. In legal jargon it is known as a […]

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Avoid Three Seller Financing Mistakes

Would you rather have $97,000 to sell your $100,000 note or only $80,000? The difference in usually comes down to the big three. Here’s the three biggest mistakes note sellers make and how to avoid flushing money down the drain. Mistake #1 – Failing to Check Credit The payer’s credit report lets you know how […]

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Seller Financing – How Much Can The Buyer Afford?

Many sellers accept owner financing without any idea of how much the buyer can actually afford to pay. The last thing a seller wants is to stress over receiving monthly payments or worse, getting the property back through foreclosure. 3 Ways to Calculate Payment Affordability Before Accepting Seller Financing The amount a buyer can afford […]

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Seller Financed Notes and Interest Rates

The interest rate a seller agrees to accept when providing owner financing to the buyer has a large impact on the note’s value. Unfortunately, many sellers overlook this important decision. Why Private Mortgage Note Interest Rates Matter Inflation Fighter Each year it seems the cost to buy the basics just keeps going up. It’s not […]

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What is Seller Financing?

When a seller allows a buyer to make payments over time for the purchase of property, it is known as owner financing or seller financing. This private financing by the seller can take the place of a bank loan or be in addition to a conventional mortgage. The payment amount, interest rate, and other terms […]

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Use Outside Closings To Sell Mortgage Notes!

Ready to sell mortgage notes? Protect yourself with outside closings! When an investor has performed their research and is ready to purchase a private mortgage note they will ask the seller to deliver original documents (note, recorded mortgage, etc.) and sign the transfer package. The Note Buyer The note buyer will want these original documents […]

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Sell Property Fast With Owner Financing

When a property isn’t selling most real estate agents are quick to suggest a reduction to the sales price. It is common to see the tag line “Price Reduced” added to for sale signs, listings and ads. Rather than just reducing price… consider offering owner financing to sell a property quickly! In today’s real estate […]

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How We Can Help!

Receiving payments on property sold?

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We Buy Mortgage Note, Trust Deeds, and Contract Nationwide!

Accepting payments on the sale of real estate might have made sense at the time, but circumstances change.

Many sellers discover they would now prefer cash today rather than the small amount that trickles in each month.

Here are just a few reasons people have sold all or part of their seller financed mortgage notes for cash:

  • Retirement
  • Taxes
  • Investment Opportunity
  • Expensive Medical Care
  • Vacation
  • College Tuition
  • Unexpected Financial Changes
  • Peace of Mind – no more worrying if the buyer is going to make late payments or having to foreclose
  • Accounting headaches, IRS regulations, paperwork hassles and the list goes on…

The only way to decide what is best for your situation is to know the options available.

Discover Your Options - Request A Free Note Analysis!