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Note Investing In Real Estate

Note investors should make sure the borrower has appropriate insurance for the collateral and that the note investor is listed as the Mortgagee on the Evidence of Insurance certificate issued by the insurance company.  When listed as a Mortgagee on the insurance policy, the insurance company knows to issue a check to both the Mortgagee and the Borrower.   In addition, if the policy is changed or canceled, the Mortagee is notified and can take corrective action. Note Investing Software The first mortgage is the original loan taken out when the house is purchased.  The second mortgage may also be taken out at that time or at a later time as a home equity loan. First and second mortgages are both secured loans secured by your property. However, the second mortgage notes are much less expensive. To start investing in mortgage notes, you need to understand what mortgage notes are, how to find them and how to understand contracts. All these processes are easy to learn; anyone can do them, doesn’t require a whole lot of investment and are relatively risk free. Interested? There is a whole market of mortgage notes out there, that you can simply tap into and start making profit without a significant amount of investment and without many hassles. You need to know a few tricks and tips of the mortgage notes, how to get a discount and low performing note, and how to manage those using simple rules and methods. The mortgage note is signed to provide evidence and security for the loan, and it describes the terms and conditions under which the money has to be repaid. This legal document contains standard covenants between the lender and borrower. The lender will also hold this document until the loan is fully paid off. Once the loan is paid, the lender will record a release of mortgage or a re-conveyance of deed. How Does Note Investing Work Once a lender originates a loan, it rarely stays in their possession.  The mortgage note is sold into the secondary market, usually as part of a larger pool of notes.  From there, depending on the performance of the note, it’s usually held by the Buyer of the pool of notes, who either services the notes themselves or subcontracts them out to a Servicer.  A Servicer is a company that’s licensed by the various states to collect on behalf of the Buyer. Note Investing Guide The second mortgage is what the banks describe as a home equity loan. This allows a homeowner to tap into the home equity to borrow money rather than taking out a personal loan, and use it for home renovation or business capital and such. Note Investing Education Notes are not nearly as easy to find as real estate investments.     Investors can look to buy notes directly on a note exchange such as LoanMLS.com, or you may choose to work with professional hard money lenders (a.k.a. private money lenders) specializing in note investments.      Education about investing in notes …

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Note Investing 101

Once a lender originates a loan, it rarely stays in their possession.  The mortgage note is sold into the secondary market, usually as part of a larger pool of notes.  From there, depending on the performance of the note, it’s usually held by the Buyer of the pool of notes, who either services the notes themselves or subcontracts them out to a Servicer.  A Servicer is a company that’s licensed by the various states to collect on behalf of the Buyer. First and second mortgages are both loans with your house as collateral, but the first mortgage (also called first lien) has the primary claim on the property. It takes precedence over all other subsequent claims (called junior claims). Investing 101 I’m not the person who will tell you that you have a low chance of beating the stock market benchmarks by yourself because you can, as I’ve done over the years. I’m the person to tell you though that even if you can do it, you should most likely just stick with index funds. For one thing, you probably have a real job where you should focus your energy in because beating the market takes a lot of time out of every single day and energy out of you. Sure, you might be missing an opportunity on the investment end by going with low cost index funds but when you can concentrate more on your family and career, you get so much more. How Does Note Investing Work And finally, where should you actually put your money to work once you know what to invest in? Most people talk about the types of investments but not many people will talk about the companies (brokerage firms) that help you buy and sell equities. Here are a few reviews of popular stock brokers where you not only can read what I think, but what many others think of the company too. Want to give the tools a test drive? Take a few minutes and simply sign up for free here. While you are in their platform, remember to check out their nifty 401K Fee Analyzer that will show you whether you are paying too much in fees, as well as an Investment Checkup tool to help determine whether your asset allocation fits your risk profile. For those trying to build wealth, Personal Capital is worth a look. You can thank me later. Note Investing Training Now if the borrower defaults on the loan and does not pay the due debts, then the property can be sold to satisfy the debt. In such case, first mortgage has the primary claim on a property and will be paid first. There is a whole market of mortgage notes out there, that you can simply tap into and start making profit without a significant amount of investment and without many hassles. You need to know a few tricks and tips of the mortgage notes, how to get a discount and low performing note, and how …

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Note Investing Training

As great as it all sounds and despite what some may claim, it is not easy over night riches. Before going further take just five minutes to check out the 5 Big Myths about the cash flow notes business. This type of misinformation was part of the motivation for creating this website. David Campbell, founder of Hassle-Free Cashflow Investing, has helped hundreds of individual investors like you acquire turnkey rental properties and income producing mortgage notes with less hassle. As a principal or key advisor to hundreds of millions of dollars of real estate transactions, David has a unique ability to simplify complex financial ideas into easy to follow action steps. http://www.HassleFreeCashflowInvestin… How Does Note Investing Work Simply fill out the form to register for our available inventory of real estate mortgage notes. The Note Factory creates a continuous supply of real estate notes for private pool of investors. When the note is created, it is packaged and delivered to our investors via our automated system.  Fill out the form to get in the loop. Believe it or not you can receive all of this in the Finding Cash Flow Notes Training for under $300. That’s less then the cost of just one textbook at many colleges. The power of the Internet now lets us share our 40+ years of combined experience with you in the comfort of your own home at an affordable price. Some methods like networking and reverse ad marketing require a greater commitment of time while ads and direct mail carry higher costs. No mater how you market it will take your time or your money… and you don’t want to waste either! With the multitude of challenges our economy has faced the average John and Jane Doe have found it difficult to get a mortgage. Banks want bigger down payments, higher credit scores, and secure employment. These requirements have left over 50% of Americans under qualified for a traditional loan. Note Investing Course When a seller accepts an offer and signs a preliminary agreement the investor will start the due diligence process. This includes checking for clear title, determining the property value, verifying payment history, reviewing the buyer’s credit, gathering documentation, and making sure real estate taxes and property insurance are current. How To Make Money Note Investing Amy Sayre is President of August REI, a Residential Loan Servicing Company. August REI is a nationally registered, bonded and insured, state licensed residential mortgage loan servicing company that acts as a logistics intermediary between private Lenders and Borrowers. Amy is a recognized expert in debt collection and mortgage loan servicing compliance. http://www.AugustREI.com Note Investing Books The note buyer funds the transaction and pays a referral fee to the broker or finder at closing. A transaction is considered closed when the transfer documents from the seller to the investor have been recorded and the proceeds disbursed. Note Investing Mentor A convertible note is typically used by an angel investor funding a business without a clear company valuation. An …

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Sell My Business Note

So if you need to sell a Church note, retail shopping center note, motel note or other type commercial note, give us a call. We’ll get you a quote usually in 1 business day and will move very quickly to get you your lump sum of cash. So don’t delay. Call Us Today. In these situations the question that will often come to mind is, can I sell my mortgage note for cash. There is a ready market of buyers for these relatively marketable mortgage instruments, and the process can be easy if your work with the right company. If you have a land contract that you wish to sell, the buyer will in most cases want it converted to a mortgage note. This is to give added protection to the person buying the note. A good note buyer has a backlog of investors on a waiting list waiting to be notified as soon as a marketable note is presented to the note buyer for review, so selling a mortgage note is very doable. The most secure note is a note that is backed with a single family residential property, with the mortgagor living in the property. Some of the things that a note buyer will look for when buying a note is the type of property, if the contract was written correctly, the credit worthiness of the payer, and if there is a balloon payment built into the agreement. Sell My Business Note If you want to sell a mortgage note, one of the biggest problems that will make a note hard to market is having documentation that the payer of the note has good credit. When the note was written, there should have been a stipulation for the mortgagor to provide a credit report and documentation of a stable income source. Those that are self-employed sometime have a hard time getting approved for a land contract as it is hard to verify the actual income and in case of default, the mortgagee may have a hard time finding assets to attach. Wages are difficult to attach even if one is able to get a judgment, as the owner of the business is also the employee and it is easy for the owner to arrange it so that he shows no income. Sell My Business Note Lastly, many commercial promissory note holders don’t realize they can sell a portion of a note’s future payments for a nice piece of cash now. This lets the seller get some often much needed working capital for their business but it minimizes the discount they will have to take. It also allows them to treat their note a bit like a ‘piggy bank’, tapping it for cash on two or more occasions. Where else can you get a nice lump sum of cash for your business without the hassle of applying for a bank loan, every business person’s nightmare nowadays? Also, we do not purchase business notes backed by non-real estate assets. Pragmatically …

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How To Find Cash Flow Notes

This section of the cash flow statement reports the company’s net income and then converts it from the accrual basis to the cash basis by using the changes in the balances of current asset and current liability accounts, such as: An increase in inventory, on the other hand, signals that a company has spent more money to purchase more raw materials. If the inventory was paid with cash, the increase in the value of inventory is deducted from net sales. A decrease in inventory would be added to net sales. If inventory was purchased on credit, an increase in accounts payable would occur on the balance sheet, and the amount of the increase from one year to the other would be added to net sales. When we use the indirect method to prepare a statement of cash flows we begin with the net income figure from the company’s income statement as our starting point. We then make adjustments to that figure to arrive at the cash amount. 3. Why do we add an increase in Accounts Payable? Accounts Payable increase when expenses are not paid immediately. If some expenses were incurred on account, they reduce net income, but do not decrease Cash. The amount of cash we spent for expenses is equal to the expenses incurred minus the increase in Accounts Payable. Cash Flow Notes Receivable Notes Payable (generally due after one year) Bonds Payable Deferred Income Taxes Preferred Stock Paid-in Capital in Excess of Par-Preferred Stock Common Stock Paid-in Capital in Excess of Par-Common Stock Paid-in Capital from Treasury Stock Retained Earnings Treasury Stock When an investor reads a financial statement, a question that they might ask is, “how did the company acquire cash and what did they use the cash for?” In other words, what were the sources and uses of cash? This question is answered by the cash flow statem From this CFS, we can see that the cash flow for FY 2017 was $1,522,000. The bulk of the positive cash flow stems from cash earned from operations, which is a good sign for investors. It means that core operations are generating business and that there is enough money to buy new inventory. The purchasing of new equipment shows that the company has cash to invest in inventory for growth. Finally, the amount of cash available to the company should ease investors’ minds regarding the notes payable, as cash is plentiful to cover that future loan expense. Changes in debt, loans or dividends are accounted for in cash from financing. Changes in cash from financing are “cash in” when capital is raised, and they’re “cash out” when dividends are paid. Thus, if a company issues a bond to the public, the company receives cash financing; however, when interest is paid to bondholders, the company is reducing its cash. Key points: – the cash flow statement explains the change in cash by three types of activities: operating, investing and financing activities – cash flow from operating activities is …

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How To Sell My Promissory Note

It is the ‘promise to pay’ based on which a promissory note is sold. It comprises of the payor and payee. There are also two kinds of this type of note. One is unsecured and the other is secured. The unsecured form does not have any attachments and it is given based on one’s ability to repay. The secured form is also made based on the ability to repay. But, the secured form of promissory note is secured by a thing of some value such as a house or car. So, how to sell a promissory note on property depends on which form it is being sold out. Taking loan from a bank is easy nowadays, you need to so your monthly income and based on that you can get your loan passed in 3 or 4 working days. However, apart from getting load from bank, where bank will enjoy the interest paid by us in form of profit, an individual or companies, can also opt for getting finance from any other source other than a bank. In such situation, when an individual or companies, get the loan from other sources, a legal agreement is setup between the payee and payer of that loan amount. Read More I see a lot of land contracts riddled with errors that without correction, the note would not be marketable. A recent case in point was a land contract that was signed, but not dated. It indicated that the first payment was due 30 days after the closing, but did not have a closing date on the contract either. The person selling the contract indicated that the payment were based on a 30 year amortization, but the payment in the agreement reflected a 20 year amortization. The record of payments for the first two years were rounded up and reflected just under a five dollar overpayment each month, but the extra few dollars were not taken off the principle. How To Sell My Mortgage Note It is better to pay attention to what a land contract buyer wants to see, when the note is first drawn-up, so that when you want to sell a land contract in the future, you won’t have problems that will hinder the selling of the note and adversely affect the market value of the note. How Much Can I Sell My Note For I would encourage anyone looking to sell his or her home on a land contract, to contact us and get some free advice as to the correct language and structure. It is highly advisable to have an attorney draw up the agreement. However, attorneys don’t always have the most current information as to the latest legislation and the ramifications on this kind of deal unless they specialize in real estate. The two pieces of legislation that come to mind as of this writing is the Dodd Frank bill and the SAFE Act. If you are not familiar with them, you need to “Google” them and make …

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