Mortgage Note Investing with CL King
Investing in mortgage notes can be a great way for you to increase your assets and to add security to your life. It is an excellent option if you want the security of cash flow for the future. It is also a good option if you are looking to begin real estate investing. It is even a great option if you are looking to sell your home.
Mortgage notes offer a great return for many different individuals in many walks of life. Knowing how to make this investment strategy work for you is important in order to be successful with it. Here are a few ideas to think about to determine where your interest would lie and how you might pursue such an investment strategy:
First decide where you fit in:
Home owner desiring a sale
Home owner desiring cash flow from a sale
Beginning investor with no cash desiring to make money
Experienced RE investor
Landlord with a current portfolio
Understanding where you fit in will help you determine what strategy to use in order to make mortgage notes a valuable investment for you. If you are a home owner simply desiring to sell your home then seller financing is something you should look seriously at. The next thing you need to think about is simply whether you want to hold the note as an investment and receive payments long term or if you want to sell all or part of the note to get a lump sum of cash. The answer will be different for every seller. If you decide you want to keep the note as a cash flow investment then it really only needs to satisfy your needs. it is still a good idea to do some research and find out how to structure a good note. If you are planning on selling the note then you definitely need to be sure and create a note that a mortgage note investor will be interested in.
If you are a beginning investor or desire to be an investor but you have no experience then you definitely need to think about things differently. If you are looking to make money with mortgage notes, know this. It is a lot of hard work. What you need to first accept is that you are talking about becoming an entrepreneur and running your own business. Recognize that running your own business is at least 10 times harder than working a job for somebody else. You must accept this and accept complete responsibility for that and then go about learning the business. You need to know all you can about the note business, how to market it and how to make sure your potential customers are satisfied. That may involve helping the home owner understand how to best structure a note or how much to expect from the sell.
If you are an experienced RE investor who already has properties and wishes to begin investing in paper then you will already have a good foundation and just need to add some additional insights to expand your business. You may need to learn more about lending rates. You will need to research the paper side of the business a bit. Know that you can turn any deal you own into a cash flow note deal. I would suggest that anybody thinking of investing in notes on a level that involves their creation, make sure the note is created in such a way that a current mortgage note investor would be interested in buying it if the need ever arose. Make sure there is a significant down payment and the rate should be above the going industry rate.
If you already own cash flow properties in the form of rentals you might want to consider the idea of seller finance for some of those properties or others you find. With this mortgage note You will have the same benefits of cash flow as you do from the rentals with the added benefit of a more responsible tenant. They will be more likely to take care of the property because they are buying it from you. They will likely take better care of the maintenance and they will be responsible for taxes and utilities and all other fees. Read more about the Mortgage Notes Business today and find out how to make it work for you.
For more info consult with the experts at C.L. King and Associates C.L. King has co-managed Mortgage Bonds, Bond Offering, Notes Offering and much for reputed business investors. If you're unclear on how to proceed with your investments then contact at 518.447.8050
Also read here: The Two Sides to Investment Banking