Real Estate investing may mean a number of things to different people – Rental Property, Remodeling, Wholesaling, REIT, etc. But we ask why hassle with these options when you can get a higher yield by purchasing the real estate backed notes?
Real Estate has long been known as a reliable and appreciating investment. Why is that true you may be asking? Lets take a look at some key advantages to an investment that is secured by Real Estate:
Real Estate Appreciates over time
Real Estate never goes out of style
Real Estate is always in demand
Here are straight forward answers to the most common questions on mortgage notes versus other ways to invest your money. We also invite you to visit our learning center filled with helpful articles and tips for understanding mortgage notes and exploring investment opportunities.
Real Estate appreciates over time
Mortgage Notes are the paper side of real estate business. The House and Property are the collateral that secures the investment. As time progresses, land and home values increase adding more to your investment. In addition, on a monthly basis the principal and interest are going directly back into your account for you to save, reinvest, or spend.
We firmly agree that every portfolio should have diversity. But in this discussion we are looking at the differences between a mortgage note investment and that of a stock investment. Stocks are more volatile and while they can make you rich on paper you don’t actually see any of that profit unless you pull your funds out. This is unlike a mortgage note which delivers a consistent return on your investment and gives you profit back each and every month.
Real Estate never goes out of style
Real Estate mortgage notes are always in demand. In todays market, with nearly 70% fewer people able to qualify for a conventional loan, the need for private financing is tremendous. Being the bank for that nearly 70% creates a win-win situation for the home buyer and for you as the note holder.
Sure there are other investment strategies such as REITs or even traditional Mutual Funds. Yet in both instances there is no control for you as the investor. Mortgage Notes on the other hand do not have hidden fees and provide you a passive income on a monthly basis with a great deal more control.
Real Estate is always in demand
The need for housing continues to grow as populations increase and communities expand. Investing your money over time, in a model that benefits from both the buyer’s emotional and financial equity, creates a predictable income stream for you the note holder.
Investing in Mortgage Notes has often been compared to Certificates of Deposits or CDs. But the advantage of a Note is that there is a higher rate of return and access to your capital on a monthly basis – remember, principal and interest are back into your account on a monthly basis.
Contact us if we can assist you!