Buying Real Estate Notes ? A Profitable Venture

Posted by highlandsmanagementservices on December 12th, 2017

Buying real estate notes can be very profitable as a real estate investment strategy. It will for sure be profitable if you approach it with proper plans and strategies. There are many investors doing this off late and they help the owners keep the homes while they make a healthy profit.

The profit-focused approach is the most common which is taken when a Real estate note buyer chooses a distressed property and buys a note on it and then either forecloses it or chalks out a deal with the homeowner to continue to work with current plans of payments and mortgages.

The borrower focused approach is humanitarian and aims at helping homeowners keep their properties. The real estate note buyer will plan out some concessions and refinance, take a slight hit on their own profits so that the homeowner can afford the payments, and hence can keep the property.

Some types of real estate notes are-

Land Contract Notes

There are people selling land contracts at very cheap prices. Buying a land contract means the bank is not involved and you pay directly to the seller in installments. People without a proper credit history can buy real estate and seller can get a higher price for their asset by land contract sale making it beneficial for both buyer and seller.

Contract for Deeds

The contract for deeds is an alternative method to purchase a home without the involvement of bank or credit union. People sell the contract for deeds to buyers who otherwise won’t qualify for buying homes due to credit history. The buyer gets immediate possession of the home while the seller retains the legal right to it till the payment is complete.


Mortgage Notes

There are many people who often sell my mortgage notes. Mortgage notes are mortgages where instead of a bank, a private entity or person gets the payments. The note acts as a legal document against the property which acts as a collateral for payments described in the note. Owners of the notes can receive monthly payments against the note or can sell them to mortgage note buying companies, depending on their wish.

Highland Management Services LLC are professional contract buyers based in Solon, Ohio who buy all sorts of real estate notes like mortgage notes, land contracts, contract for deeds in exchange for fast cash to the seller. They also assist with any services related to private real estate note solutions.