Buy Real Estate Notes....

The decision to buy real estate notes is often made by an individual who has investment money that is free and clear and ready to be put to use. Oftentimes companies or firms are developed to only do this kind of buying and investing, and that makes the job of finding real estate notes more difficult for the individual investor.

Real estate notes are actually non-formal mortgages that owners of property are holding for buyers not qualifying for traditional bank loans. For example, a person owns a house and cannot sell it because of the high price or because those buyers interested in the property cannot qualify under a bank's tough credit scrutiny. So in order to get the price he wants for the house, the owner decides to offer a rent to buy transaction to a motivated buyer who understands that his rent will go into paying for the house he wants. The owner then holds the real estate note for that property. Things are going along fine for all parties for a few years until the holder of the mortgage note goes through a divorce and has to have immediate access to the entire house's value.


The note holder must now quickly find someone who is willing to buy real estate notes. In this process, he begins to look on line both at those resources that buy real estate notes only and those who buy all structured settlements which would include annuities, lottery winnings and other insurance payments that pay each month or once a year. There are some things to remember in choosing someone who will buy a note, beginning with their reputation. If the seller has any kind of personal relationship with the person "renting to own " there may be great concern over the reputation of the one buying that agreement, but if is strictly business, then the reputation of the buyer will not matter except in the receiving of one's money. All advice can be summed in two sentences. Check the buyer's background thoroughly and ask for a number of references. Secondly, get you attorney involved to go over every word in the sales contract.

A person who is going to buy real estate notes is out to make a profit, so know right away that when selling notes, there will be a significant loss of equity that will occur in the deal. In many real estate note situations, the one purchasing the property through a rent to own or land contract may very well be on shaky financial ground. This spells trouble for the one buying the note. The one making payment may default, property values may take a tremendous tumble, and world events could shake everything up in terms of employment and the lack thereof. The buyer is assuming tremendous risk, so he takes tremendous profit from the sale. It is possible to only receive between 40 and 60% of the actual value of the property. This is true for any structured settlement purchase, and its reality may give a seller pause before going through with the agreement.

Before ever agreeing to sell notes, a person should bring their attorney into the discussion. But even before paying an attorney, an agreement can be quickly evaluated in terms of genuineness and being a good deal. If a buyer of notes asks for upfront money, "Run Forrest, run!" Buyers can check one's credit without having any upfront money and so continue looking before deciding. Perhaps title insurance and an appraisal fee are the only two legitimate fees that a seller should have to pay in the transaction to buy real estate notes. Then take the agreement to the attorney and have her look it over with that fine tooth comb. Sign nothing until every question is cleared up.

There is plenty of money to be made in the structured settlement financial business. Sadly, some of it can be made in unethical ways. Some people who may choose to pursue the vocation to buy real estate notes do it with an eye to cheat others. There are situations in which a buyer will promise the holder of the note that a certain amount will be paid for the property. Then, once the agreement has been made orally, the buyer will come back with a much lower number because of the seller's credit rating. That kind of business tactic may not be unlawful, but it is certainly immoral and unethical. Again, it is important to know with whom you are doing business. "For the Lord God is a sun and shield: the Lord will give grace and glory: no good thing will he withhold from them that walk uprightly." (Psalm 84:11)

A person can learn how to buy real estate notes by taking classes from online websites or by taking some finance and real estate classes from a community college. The resources will cost money, but the investment in the education will pay off nicely in the years to come with a career in buying bank notes.

Company: Electro Computer Warehouse

Address: 1575 Sismet Rd, Unit # 1 & 2 Mississauga, ON - L4W 1P9

Zip code: L4W 1P9

Contact person: Marcus Wellington

Phone: 905-290-0677

Email:

More information can be found online at: somekeyword

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