Notes

Notes are a great way to make a continuous return on your investment. Buying and selling Notes are the future of the real estate market. When you buy the Note you are buying the mortgage on that property. Whether you are buying multiple notes or individual notes Nathan Strager has an abundance of product throughout the nation.

Performing: A performing note is one where the payments are made on time by the homeowner to the note holder. A performing note can be sold on the secondary market for anywhere between 80%-100% of the current note value.

Sub-Performing: A step below a performing note is the sub-performing note. This consists of late payments received by the note holder from the homeowner anywhere from 15 days to 60 days late. The homeowner has to be followed-up with in order to stay within the guidelines of the agreed upon contract. A sub-performing note on the open market can be sold between 65% – 80% of the value on the secondary market.

Non-Performing: The most popular note right now with real estate investors. The non-performing note is essentially a note that is in default and can no longer expect repayment against the original terms of the note. What makes non-performing notes so attractive to a buyer is the opportunity to essentially purchase the asset at a deep discount. From there you, the investor can decide to re-work the note or take back the asset. In this tight credit market non-performing notes can be found for anywhere between 10% – 70% of the note value for residential properties on the secondary market.

 

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2 Comments

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  2. There’s no doubt the note market is hot right now and there are few other investments that offer the same kind of returns. These are good solid definitions at a time when a lot of people are looking for real answers. Thanks

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