By note brokering you can make money without much investment (just time, phone, and advertising).It has become a more competitive area, so it may be tough to get started. It may be worth it, though, considering this is almost risk-free, while potentially very profitable.
Real estate notes are the loan documents (the contracts) created when real estate is financed. They include mortgage notes, second mortgage notes, and contracts-for-sale. If a seller agrees to take payments from the buyer for part of the purchase price, he has a contract – a note. If at some point he wants a large chunk of cash instead of monthly payment, he sells this note.
These notes sell for as much as a 30% discount off face value, making them a potentially profitable investment. How would you like to buy $100,000 for $70,000? But what if you don’t have that sell in cabo kind of cash to invest? There is another way to make money with real estate notes.
Note Brokering – How To
There are large investment companies that buy real estate notes. They are ready to buy them virtually anywhere in the country, but they can’t be everywhere at once, this is where you come in. You find the note holder who want to sell, and get a chunk of the sales price. Let’s look at an example.
First you have to find one of these investment companies that work with note brokers like you. A quick search online will get you started. Some will charge you an up front fee of as much as a few hundred dollars to join their organization. This is okay as long as you know what you are paying for – are they definitely a regular buyer of notes, and do they give you some support?
Now you place an ad: “Tired of collecting payments? I can cash you out.” Alternately, you just start listening to people until you find a friend or acquaintance who has money owed to him for real estate, and wants to get a chunk of cash instead years of payments. You find a friend of a friend who is still owed $120,000 on a piece of