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Notes vs. Real Estate – #5 Capital Requirements 

May 11, 2022

Lauren Wells

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When the real estate market is on an upswing, many investors flock to profit from the boom. Unfortunately, not everyone gets to be part of it. This is because of the high capital requirements. 

The fact is, when there’s a seller’s market, as we’ve seen over the past year, property prices can skyrocket overnight. In 2021 alone, home prices rose at a staggering 16.9%. This growth is expected to continue this year as well, although not at the same pace. 

So, for many people, buying real estate as an investment is beyond reach. Even if you can afford it, there are substantial risks involved when converting it into a profitable investment. We’ve already covered some of them in previous posts. In the end, if you make a loss, your finances could take a substantial hit due to the scale of the initial investment. 

Compared to real estate, mortgage notes have low investment thresholds. You can literally start investing with a few thousand dollars. 

The lower capital requirements make notes much more accessible to investors with limited funds. If you are someone new to note investing, you get to try it out without committing large amounts of capital. 

#noteinvesting #mortgagenotes #investing #7EInvestments 

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