Every once in awhile, the real estate forces converge to create a great investment opportunity. Because the marketplace is ever-changing, mobile home parks are once again an attractive investment opportunity. Towards Wealth works actively in the Mobile Home Park investment space, with its investment partners and with new mobile home park development syndications in Texas. TODAY, THE NUMBERS WORK. With an opportunity to make huge returns.
Real estate investor for more than 35 years, licensed Realtor ® in Texas, and founder of Towards Wealth. MEET JIM GLASGOW
maybe several more times throughout the life of the loan you’ve received a notice your loan has been transferred. Frequently, this transfer means your loan has been sold to some other lender. Because you reliably made your payments, your note was an attractive investment to the buyer, so a deal was struck to transfer your loan to the new owner. When notes are transferred like this, only one thing chang- es: the name and address where payments are made. All other terms remain totally static. Most of the time, performing loans are traded at a small “discount” versus the loan balance. For example, if a perform- ing loan has a balance of $100,000, the buyer of that loan might only pay $97,000 to the owner – a “discount” of $3,000 (or three percent). For note investors, the discount is centrally important be- cause higher discounts equate to higher yields. That’s because even though you may be buying the note for a little less than it’s worth (aka “getting a discount”), the payments being made by the borrower remain the same which pushes your cash-on- cash yield higher. For the investor seeking cash flow, performing real estate notes may be absolute nirvana. These assets produce cash flow consistently while still being very safe because there is a reliable borrower whose commitment is backed by a valuable piece of collateral in the form of real estate. However, reliability isn’t the only selling point for perform- ing notes. This type of ownership is very simple, too. Owning a note is very different than being a landlord. As a landlord, you own the real estate, so you’re responsible for property maintenances, property taxes, insurance, and all of the other
obligations of real estate ownership. But if you own a real es- tate note instead, none of those things are your responsibility. Investors in performing notes are in search of one thing: cash flow. Performing notes are a safe, reliable, low-effort way to enjoy regular cash flow from real estate. Of course, the biggest opportunities for profit tend to be- long to investors who are willing to solve a problem of some sort. The final fundamental note investing strategy, non-per- forming notes, provides overwhelming problem-solving and profit opportunity that any serious investor must consider. FUNDAMENTAL STRATEGY #3: NON- PERFORMING NOTES (AKA DEFAULTED NOTES) Non-performing notes are real estate loans in which the borrower is not keeping up their end of the bargain. This usually means they are failing to make timely payments. Sometimes, notes are in default because the borrower is unreliable and the real estate backing the loan isn’t of high quality. In those cases, defaulted notes should be avoided. Quite frequently, defaulted notes can be an overwhelmingly attractive investment because they can often be bought at a
LET’S PUT MOBILE HOME PARK PROFITS IN YOUR POCKET Call Jim at 210-413-7230 or visit www.towardswealth.com today!
> Continued on :: PG 113
Bryan Ellis is the CEO and co-founder of Self-Directed Investor Society. Learn more about prohibited transactions, self-directed investing, and real estate investing in your IRA at https:/ SelfDirected.org.
This is not an offer to sell or a solicitation of any offer to buy any securities. Offers are made only by Prospectus or Private Placement Memorandum, or other offering materials. To obtain further information, you must complete our investor questionnaire and meet the suitability standards required by law. Some opportunities are only available to accredited investors.
86 | think realty magazine :: december 2017
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