ANNANDALE, Va. ─ Mortgage note investing has recently gained momentum as an alternative real estate investment strategy. According to 7E Investments, a leading Virginia-based mortgage note investment firm, many investors still fail to harness its inherent advantages due to a lack of knowledge and awareness.
“Mortgage note investing offers unique advantages for investors seeking passive cash flow. But unfortunately, it’s often an overlooked investment strategy by many new investors,” said Founder of 7E Investments Christopher Seveney.
With mortgage note investing, investors typically purchase distressed debt from banks at discounted rates. By setting up a modified repayment strategy for borrowers, investors have the ability to earn a return through interest payments. Therefore, notes could generate cash flow for passive investors seeking minimal involvement in managing their assets. The returns often make them a more appealing investment solution compared to many traditional passive income-generating instruments, such as government bonds.
Notes are secured by physical real estate, which makes them a safer investment than popular investment options such as stocks. This collateral serves to safeguard investor interests in the event of foreclosure.
Moreover, mortgage notes are generally liquid assets that are tradable in the secondary market. They also provide several exit strategies for investors looking to exit their investment before their notes reach maturity. In addition, they could shield investors from most risks arising from market volatilities.
“Mortgage note investing could be an excellent investment strategy for investors in different phases of their investment journey. However, a lack of sufficient educational resources prevents many investors from taking advantage of this unique investment solution. That’s why 7E Investments is dedicated to investor education through in-depth materials, from podcasts to eBooks, so we could equip investors to make more informed investment decision,” Seveney asserted.
About 7E Investments ─ 7E Investments is a Virginia-based private real estate investment firm. The company is a mortgage note investment firm that has managed a portfolio of over 500 performing and non-performing assets valued at more than $75 million. The firm specializes in providing custom active and passive investment options for investors. 7E Investments has built a team of professionals across all major markets, allowing their clients to invest from anywhere across the U.S. To learn more, visit 7einvestments.com or listen to their podcast.