Investing in mortgage notes can be a great way to generate reliable passive monthly income with the potential for really big financial gains!
What is a mortgage note?
A real estate mortgage note is a promissory note secured by a mortgage loan.
What Is the difference between a note and a mortgage
A promissory note is a document between the lender and the borrower in which the borrower promises to pay back the lender, it is a separate contract from the mortgage. The mortgage is a legal document that ties or secures a piece of real estate to an obligation to repay money.
What does a mortgage note cover?
A mortgage note is a legal document that sets out all the terms of the mortgage between a borrower and their lending establishment. It includes terms such as: The total amount of the home loan and the down payment amounts.
Should you invest in mortgage notes?
If you are looking for passive monthly income, then performing notes may be a great investment for you. The interest rates on private notes are far higher than current rates for CD’s and other interest-bearing investments.
How do you make money with mortgage notes?
Note buyers can profit from purchasing the loans as they will receive the interest from these loans and can purchase them at a discount from the lenders.
How much does a mortgage note cost?
The cost will vary based on several factors, including the age of the note, payment history, loan-to-value ratio, if it is performing or non-performing and several other factors.
