Buying mortgages
I have recently been reading about investing in notes.
Is there anyone on this forum who has had any success with buying any sort of notes?
IMO there are probably fewer people making money buying notes than there are people selling seminars on how to make money on notes. Remember, notes are sold every day in bundles of multiple millions of dollars, they are a standard financial instrument, just like government and corporate notes and bonds.
The money comes when you buy a note at a DISCOUNT sufficient enough to earn you an ABOVE MARKET RETURN. Remember when interest rates increase the price of notes (and bonds) falls, when they decrease the price of the notes and bonds rise. This is how the financial market works.
However if you can find a noteholder WHO NEEDS CASH NOW and is willing to sell his note at a deep discount to get cash, then it works to your HUGE advantage.
Let's say you sell a house to Mr. Smith and carry a second note for $30K, after a few months of collecting $300/month you realize that your COKE bill is much higher than $300/month and your car payment, house paymenbt and other payments are getting in arrears and some quick cash would "fix" your problem.
I would be willing to give you about $12K to $15K for your note TODAY. You get enough money to "fix" your immediate problem and I make really good money on my investment.
I'm presently carrying 11 mortgages on places that I sold and seller financed (first mortgages). I receive about 45-50 postcards and letters per month from people who took a seminar and want to cash me out. I never bother to reply. I don't need the money and I like earning 12% on my money.
all cash
I also carry notes and throw the post cards away as they come in. There are opportunities out there to make money in notes but I'll stick to things that aren't taught in seminars and books for now.
:wink:
