How Do You Make Money On Real Estate Notes?
Making money from real estate notes can be challenging, time consuming and competitive, but it can also be rewarding. After reading this article, you’ll know how to start investing. The money you want to invest has to be in cash and readily available. If you don’t have your own funds, consider setting up a line of credit with a bank. This takes time, but it can be well worth it if you can perform more quickly than your competitors. Set out your investing goals. Knowing in advance the minimum return you need will save time for you and the seller of the note. Investors make money on real estate notes by buying them at a discount. For example, a $10,000 note that pays 5 percent interest yields $500 per year. If you buy the note for $5,000 and still collect the $500 interest payments required by the note, your return will be 10 percent. Determine your costs. Can you handle collections on your own, or do you have to outsource it? If it’s outsourced, what does this cost? What are your costs
