MARKET BREAKDOWN
NOTE INVESTING
TAILOR-MADE BACKING FOR YOUR BUSINESS IN A FLASH
YOUR NEEDS AREN’T MADE-TO-ORDER.THEY’RE CUSTOM.
An Introduction to Note Investing THE SIMPLEST (BUT LEAST UNDERSTOOD) FORM OF REAL ESTATE.
by Bryan Ellis
T
hink quickly: What form of real estate investing is usu- ally unknown to beginning real estate investors, but is well-known and preferred among investors with multiple decades of experience? The answer is not ownership of rental properties, as you might have expected. The answer is investing in “real es- tate-secured promissory notes”. Real estate-secured promissory notes, “real estate notes” or “notes” for short, are nothing more than loans connected to real estate. If the borrower makes their payments on the loan, they keep the real estate. If the borrower does not make their pay- ments on the real estate, the lender takes the real estate back. Real estate-secured promissory notes, “real estate notes” or “notes” for short, are nothing more than loans connected to real estate. If the borrower makes their payments on the loan, they keep the real estate. If the borrower does not make their payments on the real estate, the lender takes the real estate back. On the surface, that’s all there is to it. But with a slightly deeper understanding, you’ll come to realize that real estate notes give savvy investors practically everything they could want in an investment:
REAL ESTATE-SECURED PROMISSORYNOTES:
A promissory note, also known as a mortgage note, holds real estate as its collateral. The note, for short, details exactly how, when, and where a borrower will make payments and explains different payment default scenarios and potential outcomes. One of those outcomes if the note is secured by real estate is foreclosure on that collateral if default occurs. LOAN ORIGINATION: The process of creating a new loan, from application to evaluation to disbursal of funds. DEFAULTED NOTE: A note that is delinquent to the point that the lender may foreclose on collateral. NON-PERFORMING NOTE: When a borrower falls behind on payments on a loan, the note is considered to be non-performing. PERFORMING NOTE: When a borrower is making payments on time, the note on a loan is considered to be performing.
Get capital suited to your specifications, so it’s the perfect fit.
• Substantial profit potential • Highly reliable cash flow • Well-secured investment capital • Low stress and low involvement
streamlinefunding.com info@streamlinefunding.com 512.250.8575
82 | think realty magazine :: december 2017
thinkrealty . com | 83
Made with FlippingBook - Online Brochure Maker