Why Would an Investor Want to Purchase a Private Mortgage Note?
The decision to invest in a private mortgage note is based upon the equity and value of the property being used as the collateral. It is fairly secure investment for the investor because the real estate secures the note. The main benefits to an investor of purchasing mortgage notes are as follows: Mortgage notes are usually sold at a discount, the buyer paying a discounted rate for the loan to the current mortgage note holder and in turn receiving all future payments made on the loan by the mortgagee.
Related Questions
- Can a relinquished property be exchanged whereby the investor agreed to carry back a purchase money note and mortgage (trust deed)?
- What are the points to be checked by an investor to check the validity of a purchase/sale note?
- What are the rates of return that I can expect if I purchase a mortgage note?
