Debt / Equity Placement

You Can’t Own Half a Stock, But You Can Own a Partial Note and Make Big Money Most homeowners do not own their homes free and clear. Those homeowners are making payments every month to somebody—and that somebody could be you. Most real estate investors assume they have to buy a property as their investment. But you can invest in mortgage notes—with much fewer headaches. One way to do that is with a partial note purchase. What are the Advantages of Owning Notes Instead of Properties? One of the best things about owning the note instead of the house is…
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. Years of training is required to deeply understand the risks associated with investing in notes. But understanding the simple factors presented below will help ensure the quality of your investment. There are three elements that are essential to any note…
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. This tax burden, depending on how much you have profited from the sale, could be tens of thousands of dollars; it could even reach into hundreds of thousands when selling a multi-million-dollar property. Fortunately, there are ways to reduce your…
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 diligence to determine the probable return you’ll experience from this unique investment. To tackle the factors surrounding mortgage note underwriting, you must separate performing from non-performing notes. Our overall assumption is that risk-averse investors buy performing notes while risk…