Here is another of the real estate investing secrets for you; it is possible to earn higher return on investment income from buying non-performing notes than through other, more traditional methods such as junk bonds. If you put your money into a bank’s non-performing notes, your investment is secured by the property in which you’re investing.
For those who are new to this investment strategy, the art of buying non-performing notes is actually the study of and purchase of defaulted loans. There is a lot of risk to the process, so beware of any note seller who tells you their offering is a sure thing. But when you find the right notes and do your homework, the money can make it all worthwhile.
There are sub-performing notes, which are generally established for loans up to sixty days delinquent. Re-performing notes reference those that were delinquent but are re-paying, or that have delinquent repeatedly. Non-performing notes generally refer to loans that are ninety days or more delinquent.
Just like any other type of investment, you’ve got to know what you are putting your money into. You can study the neighborhood where the real estate sits. Attend zoning commission meetings to learn what developments are expected to take place in the area. Review the loan holder’s track record from prior to his current situation to determine whether this is someone who will convert the notes. You can build up equity without the hassle of being a homeowner or a landlord if you choose your properties carefully.
Learning how to find these notes is your important first step in the process of this real estate investing secrets process. Typically you do not just walk into a bank and ask if they have any non-performing notes you can buy. You can phone the headquarters of your area’s bank and ask for the director of Secondary Marketing but unless you know what you are doing you will likely run into a brick wall. It is better…
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Buying Non-Performing Notes is Another One of the Real Estate Investing Secrets published first on http://www.noteseminars.com/
Buying Non-Performing Notes is Another One of the Real Estate Investing Secrets published first on http://www.noteseminars.com/
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