Debt / Equity Placement

I get lots of calls from people asking about the advantages of investing in mortgage notes. Most of those calls come from landlords who own one or more rental properties, and they share a common dilemma. The reason they bought rental properties was to have stable, monthly stream of income—not because they wanted an endless stream of headaches from tenants.

Whether you’re buying Mortgage Notes from a broker or performing your own due diligence careful underwriting is always prudent. Working with a seller you know and trust lessens the need for in depth investigation. However, if you’re working with a seller or broker for the first time you should always verify the critical information to the best of your ability.

There are many reasons to purchase investment property. While this type of investment can come with large upfront costs, more work, and higher risk levels, there is also the real opportunity to experience some of the highest possible returns.

But one of the downsides to owning investment property is the potential for a large tax burden when selling the property.

If mortgage notes were risk-free, they wouldn’t require underwriting. While these notes come with a variety of risk/reward profiles, none are risk-free and thus all require some degree of underwriting. This is important to individual investors who want to add mortgage notes to their portfolios. Although the notes are collateralized by real estate, it takes a significant amount of due