The Power of Notes
Let’s talk about the three possible outcomes when investing in real estate notes – (hint: you win no matter the outcome!)…either the homeowner (lendee) will pay as agreed, payoff early, or they will fail to pay.
When you buy a mortgage note, you are the lender to that homeowner. They have made a promise to pay upon signing a promissory note to make monthly payments back to you by a certain date.
After viewing this video, you will see how powerful investing in real estate notes can be when it comes to wealth creation!
In our example, the terms are the following:
Market Value: $110,000
Loan Balance: $80,500
Monthly Payment: $477.42
Remaining Term: 249 Payments
Loan to Value: 73%
Interest Rate: 4% (30yr fixed)
Original Loan: $100,000
Discount Buy Price: $57,500
There Are 3 Possible Outcomes
Pay As Agreed
Monthly Payment: $477.42
(x) Remaining Payment: 249
Total Payback: $ 118,877.58
8.10% Yield
Pay Off Early
Monthly Payment: $477.42 (x) 60 mnths
Total Payments: $28,645.20
Payoff Balance: $66,637.77
Total Payback: $95,282.970
12.28% Yield
Failure to Pay
Monthly Payment: $477.4 (x) 60 mnths
Total Payments: $28,645.20
Foreclose & Sell: $102,000
Total Payback: $130,645.20
19.28% Yield
You May Also Want to See:
- CFD vs. Mortgage/Deed of Trust – What’s the Difference?
- Unlocking Cash Flow: Harness Mortgage Note Investing and Be Your Own Bank
- Demystifying Mortgage Note Investing: How to Get Started Now!
- 8 Ways to Make Money with Real Estate Note Investing
- Struggling Wholesalers to Thriving Note Investors – Our Story
