Wholesaling Mortgage Notes: Fad or Best Strategy for the Future?

Wholesaling Mortgage Notes: Fad or Best Strategy for the Future?

Investing in mortgage notes has become incredibly popular recently, but is it just a fad or could it be an essential long term and highly profitable strategy from here on out?

Investing in wholesaling notes isn’t really new, even though some have only recently caught onto it. Many real estate and mortgage pros began flipping loan notes a few years ago as a side business, but often got nowhere due to being poorly educated about the process. However, others have been acquiring home loan notes for years; even before the bubble bursting and the foreclosure crisis.

The question is whether wholesaling notes is really for you, and is it a strategy that will last?

Mortgage Notes: The Most Misunderstood Real Estate Investment

Few really, truly get what note investing is all about. Yes, it can offer steady income -often with far above market yields – but that is really only the tip of the iceberg of the potential profits, especially for those wholesalers.

Loan notes do throw off regular income from monthly payments, but they can also be cashed in for quick and sizable lump sums, or can even offer a hybrid combination of both.

Plus, with so many non-performing home loans out there today, this paper can also be a short cut to acquiring underlying real estate at sizable discounts, as well as an alternative to spending money on marketing or fighting over short sales and bank owned REOs.

The Benefits of Wholesaling Notes for Quick Cash

  • Provides a way to jump ahead of other investors to acquire distressed properties
  • Less competition means potentially bigger discounts and profit spreads
  • Fewer extra costs that dig into net profit
  • Does not rely on obtaining financing and closings, resulting in shorter cash cycle
  • Easier management
  • Offers multiple exit strategies

2 Paths to Note Investing

There are two main ways to get started with notes…

1. Buying Notes

Notes can be purchased from banks, credit unions and other financial firms, or even from other investors who create them. These aren’t offered up in listings like residential real estate, but there are plenty out there to be had by contacting these sources directly or advertising yourself as a note buyer.

2. Creating Mortgage Notes

Investors can also create their own mortgage notes when they offer seller financing on homes. These loans can be in first or second position and investors can use their own cash or that of private lenders. The potential for conjuring up all types of terms is there, but it is essential to understand what makes an attractive and salable note before creating them or face being stuck with paper no one else wants.

However, before investors take off on this tangent, it is important to get educated on the process of wholesaling notes, get a good understanding of what types of notes are in demand right now, and seriously ask whether this is just going to be a distraction from regular business or will truly deliver more profits and an improved ROI.

Click the Join Now Button Below to Get Your 30 Day Risk Free Trial of Flip2Freedom Academy

11 Responses to “Wholesaling Mortgage Notes: Fad or Best Strategy for the Future?”

  1. Click for more

    Hello bloggers, the good thing is this weblog has many active visitors but I am curious, why there are a lof of out of topics opinions in this article.Many of you would possibly not see but I believe it is by far a very good reason for me to take a look at.

  2. Dry wall Sorocaba

    I haven’t checked in here for a while because I thought it was getting boring, but the last few posts are great quality so I guess I will add you back to my daily bloglist. You deserve it my friend :)

  3. ffxiv power leveling

    I have had these particular %anchor% for an estimated Eighteen months and are usually few the perfect %anchor% Document private. We gone to European from February-March additionally they were definitily suited to the next thunderstorm over there very exactly like just what people wore. Many functioned from Brussels, Maastrict, Paris, france ,, Zurich along with tips. For a natural involved with In these people are amazing because our temperature ranges are ranging by way of wet and then 52 programs to twenty further down when it comes to Day. Love people in addition to would probably repition choose!

  4. Frida Ullah

    GOOD DAY FRIENDS! This is a great blog and I want to share something with you. I have a local business and I used this gig to check and correct all my online listings and reviews for only $5. Really helped my business! – Local Biz Help

  5. DQ

    Wow that was odd. I just wrote an extremely long comment but after I clicked submit my comment didn’t appear. Grrrr… well I’m not writing all that over again. Regardless, just wanted to say great blog!

  6. Nicole

    I have found the best kept secret in internet traffic and I want to share it with you. Everyone thinks the best website visitors comes from Google but the real quality traffic comes from paid traffic. The guys that I know that make the high 6 and 7 figures all buy their website traffic. Go here to see the offer they shared with me: http://nsru.net/019r

  7. Make More Money

    Great information. Lucky me I recently found your site by accident (stumbleupon). I have book-marked it for later!

    Btw – Are you earning substantial income on the internet from your site? For lots of people like me internet is the|may major income source. I don’t just create a web site, I love generating income from secret sources on the Internet. If you are also searching for ways to earn substantial online revenue than I suggest you to visit the Millionaires Club website to discover the top secret methods of Earning As High As $16,383 A Week Online. All the best, – Catalina Gore

  8. Britt

    You should try this service for getting more traffic: http://nsru.net/019r – I use it on all of my sites and I am very satisfied. This service will get you targeted visitors with no effort on your part. Thank me later!

  9. Elwood Stooksbury

    I simply want to say I am just newbie to blogs and truly savored this web blog. Likely I’m likely to bookmark your blog post . You certainly come with outstanding writings. Many thanks for sharing your blog site.


Leave a Reply

  • (will not be published)