Mortgage note investing is one of the best real estate investment opportunities available but it is rarely discussed. In this article, we shall discuss the various types of mortgage notes and how to invest in them. Real estate or mortgage note investing is owning real estate without property management or without becoming a landlord where the homeowner pays the investor instead of the bank.
It is an inexpensive way to invest in real estate. It is an incredible vehicle for building passive income but there are many things that you should be aware of. Mortgage notes are also known as real estate lien notes and borrower’s notes. They have become a popular asset class over the past few years.
Investing in mortgage notes has many benefits such as — rates of return that are higher than the bank's traditional low yield bonds; and higher than most stock dividends. Notes are available through note exchanges, note brokers, and organizations. Consider using a mortgage broker or an investment advisor to help you find the best options. If you are experienced enough, you can potentially find and purchase your own mortgage notes.