We are often asked for the most basic explanation of note investing from those that are completely new to the concept. Our response commonly uses the analogy of the investor (you) to the bank. If you think of yourself as being the bank or the lender, and you are lending to an individual then often times this will bring clarity to the mystical concepts that new investors often times have trouble conceptualizing. Effectively, you are receiving payments plus interest on a mortgage that your payee (the person paying you the mortgage) owes to you. Lets break it down even further.
Think of a mortgage note as a piece of paper that gives you the right to collect monthly mortgage payments from an individual occupying a piece of real estate.
Become The Bank
When you hold a mortgage note from our network, simply put, you are operating as the bank. What do I mean by this? Traditionally, when a potential home buyer goes to purchase a home, they go to the large banks to obtain a loan. What if home buyers took their loan out from you? You would then be operating as your own private bank.
How Can You Become the Bank?
Contact our Internet Investor Relations Coordinator, Mitchell by “clicking here” and let us know how much you are wanting to invest. We find the property, find the home buyer, set up the mortgage terms, and simply transfer the note into your name. You are now the bank.