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Quick Guide to Mortgage Note Investing (#3 of 5-part series)

April 22, 2022

chrisseveney

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Today, we’re going to explain why note investments could be a fantastic option for risk-averse investors. 

Whatever stage you’re at in your investment journey, you would naturally want to minimize portfolio risk with a good balance of high- and low-risk strategies. Note investing offers a relatively low-risk investment opportunity compared to traditional real estate such as rentals and fix n flips. Here’s why: 

1. Low cost of entry 

Mortgage note investments generally have low minimum investment thresholds. You can often start investing with a few thousand dollars. So, they’re much more accessible for new investors with limited capital. 

2. Low volatility 

As you may already know, mortgage notes could provide a regular return through interest income. So, there’s much less volatility, unlike with traditional real estate investment options like rentals and fix n flips. 

3. Multiple exit strategies 

Mortgage notes offer several exit strategies depending on your investment goals. These can range from modifying the loan to even selling the real estate collateral in the event of foreclosure. The relatively high liquidity of mortgage notes also means you can sell them on the secondary market. 

The bottom line is mortgage note investing could be an excellent strategy to reduce portfolio risks and enjoy interest income. 

Watch this space for more on mortgage note investing! 

#MortgageNoteInvesting #mortgagenotes #7EInvestments 

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