Mortgage note investing is drawing increased attention from both new and seasoned investors. So, we thought of getting you up to speed on this lesser-known investment strategy with a 5-part snapshot series – Quick Guide to Mortgage Note Investing.
So, what is mortgage note investing? Let’s find out.
Quick Guide to Mortgage Note Investing (#1 of 5-part series)
Mortgage note investing is an alternative real estate investment strategy that allows you to become a lender instead of a homeowner.
It involves purchasing distressed debt, which banks often sell with steep discounts to minimize default risks. These mortgage notes are available as performing and non-performing notes. When a borrower regularly fulfills repayment obligations, those mortgage notes are known as performing notes, while mortgages with overdue payments are termed non-performing.
Now, you need a certain level of expertise to select mortgage notes. At 7E Investments, we use an in-depth assessment framework to identify and purchase high-potential notes from banks.
And, what about the borrower? Well, the mortgage note model provides certain advantages to borrowers. If they qualify, they get a restructured repayment plan to avoid foreclosure. This makes mortgage notes a great option for socially conscious investors!
Stay tuned to learn more about mortgage note investing.
#MortgageNoteInvesting #7EInvestments
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