Notes vs. Real Estate – #6 Social Impact

May 13, 2022

Lauren Wells



In the last of this 6-part series, we want to look at something that’s become an important consideration for today’s investors—social impact. 

In addition to aiming to grow their wealth, many people are looking to make a positive difference in society through their investment activities. So, it’s no surprise that note investments are attracting more and more socially conscious investors. 

Unlike traditional real estate investments, notes offer a more direct and obvious socially responsible investing strategy. When purchasing distressed mortgage notes, you’re typically acquiring the debt from a larger financial institution. Due to the size of these larger institutions, the time it takes for them to make a decision can be months which typically puts a borrower further in default. However, if you are a small business, you are able to expedite the decision making process and as a result, reduce time and expenses. Ultimately, this allows you to provide the potential for more customized options that take into consideration the borrower’s needs, goals and current financial circumstances.  

Now, can you imagine what all this would mean to a borrower facing financial hardship and about to lose their property? Remember, foreclosure is a highly stressful experience for any homeowner. 

By purchasing distressed mortgage notes and having borrowers who are interested in and qualify for a new repayment plan, you’re able to help distressed families stay in their homes. The impact of this can extend to entire communities and society as a whole. And the best part? You may be able to achieve all these while aiming for an opportunity to earn interest income. Now, that’s something other real estate investments may find hard to match! 

If you found this series helpful, check out our podcast to learn more about mortgage note investing. 

#noteinvesting #mortgagenotes #investing #7EInvestments 

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