Mortgage Notes — An Overlooked Corner of Real Estate Worth Knowing
There's plenty of content on hard money and conventional financing but almost nothing on mortgage notes. Wanted to fill that gap.
What is a mortgage note? When a property is sold with seller financing, the seller becomes the lender and holds a mortgage note. The buyer makes monthly payments directly to the seller instead of a bank.
What most note holders don't know If you're holding a seller-financed note, you don't have to wait years to collect payments. You can sell that note to an investor for a lump sum today. The note buyer takes over collecting payments and you walk away with cash now.
What investors should know Buying mortgage notes is an alternative investment strategy that many real estate investors overlook. You essentially step into the role of the bank — collecting payments on a property you don't have to manage.
Private money for flips
On the flip side, private money is often faster and more flexible than hard money for investors who need to move quickly on a deal. Terms are negotiable and it can make the difference between closing and losing it.
— Gerard