Buy And Sell Mortgage Notes
Mortgage Note Investing
Don’t put it off any longer; discover how to invest in mortgage notes and start taking advantage of the unique possibilities that this alternative asset class provides. Schedule a free consultation with Melanin Homes today and begin your mortgage note investing adventure!
“What Is A Mortgage Note?”
A mortgage, in general, is a contract. It’s unique because it’s secured by real estate rather than just cash. The document you sign at the conclusion of your home closing is known as the mortgage note. It accurately details all of the terms of the mortgage agreement between the borrower and lender. When you buy a house, the mortgage note is the legal document that describes how you’ll repay your loan and uses your home as collateral.
Learn how to profit from purchasing notes by earning interest on the loans, and best of all, you can buy them at a discount from the lenders. Note buyers may work with lenders that service their loans for them and receive monthly payments without having to contact the borrower. Schedule a free consultation to find out more about mortgage note investing!
Types of mortgage notes
There are different types of mortgage notes, each with its own set of rules and restrictions. Lien position, performance, and asset class are some examples of mortgage note categories.
- Lien Position: The lender’s claim on the asset is classified according to the lien position. It determines which lenders are paid first if something goes wrong.
- Performance: A mortgage note is said to be “performing” if the borrower has paid their mortgage on time and never missed a payment. Borrowers who have stopped paying their mortgages are in default. The term “nonperforming” may be used to describe loans that haven’t been paid within 90 days. If borrowers haven’t paid their loans within the last 90 days, they are generally labeled as “nonperforming.”
- Asset Class: You may also categorize a note by the underlying asset class. Mortgage notes of every sort of property exist, including single-family homes, multi-unit properties, townhomes, apartment complexes, and commercial property.
In most situations, these can be divided into two categories: residential and commercial notes. Learn how to take on the role of the bank and collect the remaining debt on the note while receiving monthly P&I payments. Schedule your free consultations today!
Easy 3 Step Process To Invest In Mortgage Notes!
01.
Consult with Melanin Homes to discuss investment strategy
02.
Review LIVE inventory to identify asset(s) that fits your criteria
03.
Within 90 days close a Note and become the BANK!
Advantages of Buying Real Estate Mortgage Notes
Mortgage notes for real estate investors can potentially provide a steady stream of income opportunity without the difficulties of becoming a landlord, or the note can be acquired and sold to another investor later. Notes can also be a method of buying real property for less than its market value. Regardless of your strategy, it’s impotent to have the right information and guidance to make certain you are making sound decisions with your investments.
More Benefits
IRA Friendly
Monthly Income
Rollover Option
High Yield Returns
How to invest in mortgage notes IN NEW YORK
Not many people know that mortgage notes may be purchased and sold. Fewer still are aware of the key that makes investing in notes so lucrative: real estate notes are bought at a discount from the remaining balance. The greater yield available through the discount allows investors to earn more money than the note’s interest rate.
Mortgage notes are a wonderful method to generate passive income. It is quite simple to create monthly revenue without having to worry about properties or tenants with this strategy. At Melanin Homes, we go through everything you need to know about investing in mortgage notes so that you may get started right away.
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Client Reviews
At Melanin Homes we do our best to provide excellent service every time, which is why we are proud to share our client reviews!
Kim Caton
Can’t express how pleased we were to work with Melanin Homes. Lorraine and her team are extremely professional, organized, efficient and very communicative. We look forward to working with them again in the future for any of our real estate needs. Thanks so much!
Shawn Tiberio
Melanin Homes is hands down one of the best real estate solution companies in the NY area. Very professional and always puts the needs of their clients at the forefront of the process. Highly recommend you discuss your real estate situation with them if you want a fair, no BS solution.
Suvarna Joshi
Melanin Homes is my go-to for all my real estate investment needs. These people are so knowledgeable and know their market well. You cannot go wrong with Melanin Homes, I highly recommend them!
Frequently Asked Questions
How does the process work to buy mortgage notes?
As a Note investor, we are purchasing performing and non-performing Notes directly from hedge funds, credit unions and banks at a discount of 15-35% of the remaining balance of the loan.
How much money do I need to buy Notes?
Notes vary in price range. There are Notes as low as $20,000, as high as over $100,000 and everything in between.
Do I need a license to buy or sell notes?
There are currently a handful of states who are starting to require a license from investors who are purchasing Notes, but a majority of the states do not require a license for purchasing Notes.
Do I own the property when purchasing Notes?
Unless you are purchasing a Lease Option note, you do not own the property when you purchase a Note. When we are purchasing Notes, we are purchasing the debt associated with the property instead of the property itself.
Is my investment protected when buying Notes?
Yes it is. When purchasing Notes, your investment is secured by a hard asset which is the actual property.
How much will your company’s services cost me?
There are no upfront fees! We do not charge you to discuss your situation, review LIVE inventory or make an offer on a note.
Additional Services
Melanin Homes does more than just buy houses in New York. We also sell wholesale properties, partner with local agents and provide investing opportunities for private leaders.
Wholesale Deals
Click here if you are interested in being notified when we have off market property deals available for sale.
We Partner with Agents
Find out how we work directly with the top agents in our area to help us find the best property deals.
Investing Opportunities
We provide investing opportunities for private money lenders looking to invest in our real estate projects.
Latest News & Blogs
Holding My Mortgages Notes: Is it A Good Idea Or A Bad Idea?
Mortgage notes are a form of promissory notes where a homeowner puts into writing that they promise to pay off their debt to their lenders. As the borrower in the note, you have the option to sell your mortgage note or to hold on to it.
Should I Buy Discounted Mortgage Notes? A Few Tips To Remember
Mortgage notes investments have long been a dependable way to grow one’s savings. Investors can buy, sell, or create mortgage notes in order to make a profit.
Essential Tips You Need To Know When Investing In Mortgage Notes
Investing in real estate is always a good choice because no matter the economic climate, people are going to need a house to live in. It’s one of the basic necessities you just can’t give up. However, investing in real estate is expensive, and not everyone has the extra money needed to purchase a second property.