Investing in private mortgage notes provides a steady stream of passive income—cash flow, monthly deposits that arrive every month without the hassles of tenants or maintenance.
• Secure—low investment-to-value (ITV) ratios create a margin of safety
• Passive—reliable monthly income without tenants or toilets
• Income—notes are bought at a discount to earn above-market returns
Cumulative Income from a $100,000 Note at 6% – Discount Earned Boosts Yield to 12%
Above-Market Returns from Discounted Notes
Real Estate Notes (“Promissory Notes”) are bought at a discount to earn above-market returns, as illustrated in the chart to the left.
This chart shows how a $100,000 note with a 6% interest rate would produce $71,943 in interest income. However, purchasing this same note at a discounted price of $65,065, earns $71,943 in interest PLUS an additional $34,935 in discount over the life of the loan.
Mortgage Notes provide steady income each month without the ups and downs of the stock market.
Passive Income — Without Tenants!
Investing in Real Estate Secured Mortgage Notes means you enjoy monthly income from borrowers sending in their house payments. You receive their checks or electronic transfers each month and never have to worry about maintaining a rental property or finding a new tenant for a vacant unit.
Diversify your retirement portfolio and exit the stock market roller coaster. Secure, discounted mortgage notes can be purchased using a Self-Directed IRA (SDIRA), Self-Directed 401(k) / Solo 401(k), or Trusts. Let us know if you need assistance with converting your 401(k) to a Self-Directed IRA.
Mortgage Notes are Secured by Real Estate
Secured by Real Estate
As part of our due diligence process, we verify the borrowers’ payment history, property hazard insurance, title insurance coverage, and that property taxes are paid.
We primarily purchase mortgage notes in Texas, a lender-friendly state with fast foreclosure timelines. You can rest easier knowing that the real estate collateral securing your investment can be quickly and easily resold should the need arise—and at a profit!
Let’s Talk!
Interested in learning more about private mortgage note investments? Click the button below and schedule a call today! We’ll discuss your goals and show you how buying real estate notes can help you achieve them.