Selling Mortgage Notes Learning Center l Newland Note Investors

April 14, 2018 By Noter2

How to Sell Private Mortgage Note Easily

Searching for mortgage buyers is not very difficult.

The short answer is get in touch with us at Newland Note Investors and tell us what you are looking for. The long answer, you could find mortgage buyers even online when ready to put the time and have the expertise to find a good one. There are always cash flow note buyers, and trust deed buyers. It will help you too if you ask your real estate adviser if they know any private mortgage buyers that will be interested with yours. Ask a real estate lawyer as well because they deal in creating private mortgages and in selling them. Search for articles and blog site online.

Effective ways to Sell Private Mortgage Note

You could do that by going searching through article categories online like the real estate category, finance category and go through the sub categories. Read these article to enrich your knowledge and awareness of the private mortgage sales. An easy way to go searching for buyers of your private mortgage note is using online search engine to sell it smoothly.

Use the Search Engine

Use Google, type in the phrase “sell mortgage note”, then go through those results and read the best content that looks much closer to what you need to know. You could use different search phrases like trust deed buyers, mortgage buyers, cash flow note buyers and read each of their contents on the pages. Take down notes as you go on and reading things that you will run into some of the same web sites, make sure to write down the sites you like, take the url from the browser and save it so you can go back to them when you are done going through a several websites and call them up and ask them question on how to process the sale of a private mortgage note.

Contact a local Real Estate lawyer to Help You

Some will say that to contact a local real estate lawyer, the same one that drew up the mortgage note, and ask him or her what is the best way to sell your mortgage note. It is a big possibility that they will be able to give you enough information on the issue. However, if they might not be able to is because they did not do your mortgage note in the first place. If this is the case, ask them for a referral. Try to contact at least three lawyers for information and follow the other tips that were mentioned here and you should have a good idea on the best way to sell your mortgage note.

How to sell your private mortgage note

Get in touch with your real estate adviser and ask them for help if they know how to sell your private mortgage note or if they can recommend someone to help you out and sell fast. Newland Note Investors is specialized in Buying and Selling private notes when you need expert advise and competitive pricing for your private mortgages you want to sell, so get in touch with us.

April 7, 2018 By Noter2

Real Estate Private Note Investing – How does it Work?

Great Returns with Private Note Investing

One of the best kept secrets in real estate investing is clearly the practice of Private Note Investing. While purchasing or investing on notes which are also known as home mortgages, many homeowners think it is like a complicated process. But it really is not that complex because once you take the time to understand how it works, it will be very easy for you to get involved and sell your property smoothly. Also, another good angle of this transaction is that you can set yourself up to be the note broker and still able to make money for simply brokering the sale of a note from the seller to the buyer without even touching your own savings and investments to finish the whole deal, that by itself is a great return on your time and expertise. If you have cash to invest, you could also buy the note and wait for monthly payments on your invested money, which easily yields you a return 3-5 times what a bank CD pays these days, again not a bad return for learning more about private mortgage notes.

What exactly is a Private Mortgage Note?

A mortgage note is simply put as a mortgage loan which is being secured by a piece of property. A mortgage note can represent a first mortgage, a second mortgage, a land contract, or even a contract for sale. A private mortgage note is a loan on real estate done by a private party instead of banks of lending institutions.

Why are these Mortgage Notes Being Sold?

If you have experience to borrow money on a home, in the form of a mortgage, then you have been the borrower on a note. Most often than not, once you borrow from a bank or home financing, or any lender you will be told that that your mortgage note is now being held by another lender. With this scenario, your payments may stay the same, the terms of the contract will be the same, and however, you need to send your mortgage payments to the other lender instead of the one you originally borrowed from. This usually happens when your lender has sold your mortgage note.

A Simple Example of a Private Note Investing

Let’s say that you took a home mortgage with your bank for $100,000. Your bank then process your mortgage loan and then you start your amortization payments on the property. Soon for some reason you are informed that you need to forward your payments to a new bank. This scenario happens only because your original bank loaned you $100,000 to be repaid over 30 years, then the new bank offered your bank a payment of $80,000 cash to purchase your mortgage note fast today, from then and there the new bank has the right to ask payments from you hence on over the life of the rest of your loan. This lets your old bank have again a ready $80,000 to be invested again by loaning it to other needful people straightaway rather than sit and wait for your monthly payments.

In addition to the big banks making mortgages and then selling them to other lenders, often people who carry back mortgages on their paid for properties will sell their notes as well. That is called selling a private mortgage note, for the same reason to get back a large discounted cash sum immediately instead of waiting for the monthly payments of the note to come from the property owner. So if you have cash to deploy, investing a one of these private notes by buying it at a discount from the original note holder, will let you invest your money in a note with a great yield returned on your money. Contact us for specifics of a note and the return you could expect, easily making 3-5 times what your bank is paying on CD locked money in this market.

March 30, 2018 By Noter2

How Do I Sell A Mortgage Note?

Is there an easy way to sell a house?

If you are looking for an easy way to sell your home fast and able to make money out of the sale transaction in a declining real estate market, then wise up and do something smart. The days of buy and sell homes to flip then sell them as renewed properties are over. Today, the latest fad that home owners do to make money out of their real estate sale is by the use of another method — private mortgage notes.

Define Private mortgage notes

Private mortgage notes are usually referred to as owner financed notes. This is an option that is available only when an owner offers financing of the house being sole, or a mortgage note to its prospective buyer. Generally, a private mortgage note are very attractive to buyers because:

* Some buyers are not able to get approval from traditional loans from banks;

* Home owners wanted to quickly rid and sell their home without discounting their price.

How Does a Private Mortgage Note Sale Works?

Private mortgage notes lets the buyer to purchase the home directly from the owner and make payments to them as well. This totally gives the seller of the property an option to keep their selling price high, without discount, and also to set their own interest rate. Private mortgage notes will provide the seller a steady income on a monthly basis and a potential to realize hundreds of thousands of dollars in profit from the sale of their property.

What do Sellers Get Upon Sale of their Private Notes?

As a seller and home owner, you will get a great potential for income after selling your home through owner financing. However, there are cases that sometimes, people need to get out of their financing arrangements as fast as they could. Sellers may consider looking to sell private mortgage notes if you need to get the cash out from the sale of your home. Some sellers do chose to sell private mortgage notes since it will relieve them of the task of payment collection from the new owner, and it also removes you the risk from non-payment. It is a fact that sometimes, even good payers get problems every now and then.

Finding a Mortgage Note Buyer

If you are interested in getting the cash out of your home, or simply just not want to manage the repayment process, it is best that you find a mortgage note buyer. There are a lot of mortgage note buyers that are very interested in purchasing private mortgage notes. These mortgage note buyers are usually on the look to the same opportunity for income that you find attractive. Once you decide to sell your private mortgage notes, it will not be very difficult to find them and other mortgage note buyers. This type of business opportunity has been considered a good transaction over the years.

March 21, 2018 By Noter2

Who Buys Mortgage Notes These Days?

Evaluating Your Options

In today’s volatile economy, most of the mortgage note holders are seriously evaluating their options whether to sell their mortgage notes or not. It might be common these days to see a sign that reads “mortgage notes for sale,” however, since this is all about money and business, things can happen and could get very tricky. Here is a commonly asked question.

“My understanding is the federal government is going to be offering financing to private equity and hedge funds to buy up the bad debt aka defaulted mortgages.”

How to Buy Mortgages from Banks?

Here are the Four Buckets. The competition is likely to add to the deal source for buying mortgages from banks.

There are 4 buckets in the note buying industry:

a) Big boys – buying $100M and above
b) Mid boys – buying $20-100M
c) Small boys – buying $1-20M
d) Mom and pops – buying How to Buy Mortgages From Banks, Defining Your Deal Sources

How Does the Note Buying Works?

If you belong to the Mom and Pop or the Small boy bucket, the Mid and Big boys are now deal sources to buy notes for you. This is simply put that the people who belong to the Mom and Pop or the Small boy buckets are likely to be getting mortgage notes unless the first two, Big and Mid boys have crumbs left for them to catch.

They are looking for a big IRR or Internal rate of return and they are obviously buying much more competitively compared to the small boys and the mom and pops buckets.

How to Find Notes to Buy?

View them as a note buying deal source, partner up with them, come up with some transparent Cost plus 5 type of approach where you give them 5 points in exchange for cherry-picking their portfolio and piggy-backing off their due diligence, these are the practical reasons why they will be interested in selling notes to you.

What to Do to Get Notes to Buy?

So if you feel worried about the drip from the faucet is being intercepted in some way, try to shift yourself a little so that you will be able to catch the drips from the guy who just got in front of you. And you can always go look for another faucet to buy mortgages, or those so called non-performing notes.

Non-Performing Notes

This will make sure that the Mid and Big boys are NOT out there building relationships with the 8,000+ FDIC insured banks. Even at this very moment, those 8,000 have a few non-performing notes in their portfolios!

The opportunity of buying mortgage notes is all out there for people who choose to see and act on the buying notes opportunity. Nevertheless, competition is always very steep. Keep a watchful eye and be alert all the time.

March 15, 2018 By Noter2

How to Sell My Mortgage Note?

A lot of people holding a private mortgage note are not fully aware and probably ask themselves often how to sell my mortgage note.

What is a Mortgage Note?

There are a lot of consideration when it comes to this, however, you need to clarify if you actually sure you have a mortgage note. Many people and home owners have misunderstood the process of selling mortgage notes.

Create a Mortgage Note

Some made a mistake of finding a mortgage note buyer when they do not have the mortgage note in their hands yet. To put this simply is that, most people who own a property or a house are not aware that selling them the property to relieve them of the mortgage payments is the same idea of selling a mortgage note. That is not the case. This is not what a note buyer does.

A note buyer will be interested to buy your note if you are selling mortgage notes, but only if you have actually created a note.

How Does it Work?

This is a good example to give a clearer scenario. Considering you have a property, a house. One day you decide that you want to sell it on land contract or other creative seller financing method. Then you find a buyer who then moves in the house. There is no bank actions involved this is due to you becoming the bank by carrying the note.

So, you then create a note between you and the buyer. This type of note is structured so that the person making payments on the note (the person buying the home) will be making his payments directly to you. No bank involved. With this scenario you are holding a note that you can sell to a note buyer.

What is the Key To Selling My Mortgage Note?

Let’s say you are considering selling your mortgage note, here are a few factors that you should be aware of.

First, it is a normal situation that the note buyer will go ask for a discount on your note to buy it because there must be a potential profit in it for them.

Usually discounts will depend on several factors.

What is the Risk of Default?

If the case is like this; the person who is making the payments on the note has a poor credit, there will be a higher risk of default. And since the note buyer assumes the risk of note payment default after purchasing it from you, they will definitely ask for a steeper discount to buy your note.

On the other hand, if your note has generated a steady history of good payments and the payor on the note has a less risk of defaulting, then there is a possibility that you can get more for your note.

One fact of life is that money today definitely has bigger worth than money tomorrow for the simple reason that the purchasing power of money always goes down over time.