You know how most mortgages are actually resold after they are issued and years later your payments end up with a different company than the one you originally acquired financing from? For instance, you get a mortgage from Countrywide, but five years later see that your monthly payment is actually being received by GMAC or some other mortgage company. This happens because of the act of selling the real estate note of your home.
One company would rather have a lump sum cash value of your mortgage rather than collecting on it for the next twenty-five years. Right now banks and mortgage companies are more than a little bit interested in unloading some of their mortgages. By ridding themselves of these mortgages they make their bottom line look better and free up capital they can use to lend to new clients.
Purchasing a note on someone's home is like being an invisible landlord with no responsibility over the property. You do not have to fix their heat, deal with complaints or even evict them. You simply fund the lump sum value of the mortgage and earn your money back with a profit after they make payments for decades. At present, many real estate notes are being sold on the secondary market at fire-sale prices.
Why are you not buying real estate notes? The reason why even those who are most interested in purchasing real estate notes aren't doing so is lack of capital. So you want to own a real estate as a long-term investment but do not have $500,000 or so dollars to invest? What leverage can you be used to finance real estate notes? Obviously, note purchase financing is the answer.
Note purchase financing unlike real estate financing, finances only the note on the property and not the property itself. This allows you to take the place of the bank or mortgage company that provided the loan and make an income stream off of the payments of someone you never meet, interview or have to deal with in any personal way. As a note holder, you are merely taking on a liability in exchange for a likely long-term gain.
Thanks to note purchase financing, those with good credit are able to fund the down payment on a note purchase loan, and can become the invisible landlord to a homeowner and profit off of what the bank is not willing to wait for. Think of it as the bank getting a cash settlement on a long-term loan, and yourself acquiring a relatively low risk income stream for the future.
0 komentar:
Posting Komentar