What is a Note?
In the United States, a mortgage note (also known as a real estate lien note, borrower's note) is a promissory note secured by a specified mortgage loan; it is a written promise to repay a specified sum of money plus interest at a specified rate and length of time to fulfill the promise. While the mortgage deed or contract itself hypothecates or imposes a lien on the title to real property as security for a loan, the mortgage note states the amount of debt and the rate of interest, and obligates the borrower, who signs the note, personally responsible for repayment
Do I own the house?
This is the most asked question when it comes to investing in real estate notes. The simple answer is no, you do not own the home but rather the home is an instrument used as collateral. In case of default on the note you will get the home after foreclosure and can then resell or rent.
Return
Each note is different but most of our investors enjoy high single-digit returns.
Can I purchase from my Ira/401k?
Yes! About 80% of our investors purchase real estate notes through their IRA and or 401k. Our specialized team can help you get yours set up and start investing out of in a matter of weeks.
What is a self directed IRA?
A self-directed Individual Retirement Account is an IRA that allows the account owner to direct the account trustee to make a broader range of investments than other types of IRAs. For example, Real Estate Notes.
What happens if they stop paying?
If they stop paying there are a couple of options.
Deed In Lieu (they sign the house over to you)
Foreclosure- Texas is Non-Judicial and this process takes less than 2 months. We facilitate the entire process for you and resell the house once foreclosure proceedings are over.
We have created over 600 real estate notes and our default rate is less then 5%. The odds are in your favor, but if it does go into default our highly trained team is the best at getting your investment producing the stream of income again.