Put a New Spin on the Way You Invest – Transition Into Notes
Buying the Debt to the Property
When you think of traditional real estate investing what benefits come to mind? Some might say cash flow, long-term financial security, and gradual appreciation to name a few. Depending on your own experiences you may think traditional real estate is a gamble. Although traditional real estate investing has become a mainstream method of capital growth there may be drawbacks and limitations. Most likely there will be an increase in liability and duties as well as unforeseen expenses. While you do have the benefit of being your own boss, your schedule may become more demanding than a typical 40-hour work week depending on the particulars of the property. Not to mention that no two investment properties are the same, there will always be new surprises.
Transition Into Notes
In our opinion, buying the debt to the property (notes) vs. purchasing the property is a more profitable and scalable play. When you purchase the debt, you become the bank. This spin on investing allows you to decrease liability while increasing the amount of exit strategies available to you. It’s important to remember that a national note portfolio can be managed from the comfort of your home or office. Should an issue arise, our network of nationwide vendors are available to assist you.
Another key reason to transition into notes are the substantial discounts and their obtainability. On average distressed mortgage notes can be purchased at 40-50% discount off market value. Also, the distressed note industry is not dependent on a thriving economy. If our country were to have another recession there would actually be more inventory for you to choose from.
In conclusion, converting your assets from traditional property investments to distressed mortgages is beneficial for many reasons. You will have less hands-on work with the ability to utilize our nationwide vendors. This allows you to work from the comfort of your home or office. Liability will decrease and your ROI will increase. Note investing will increase your exit strategies (long and short term options). Becoming the bank and acquiring the property with 40-50% discount off market value. Notes are not dependent on a thriving economy, there are pros to an up and down market. We strongly believe if you transition into notes you will find positive results with your investment assets.