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Real Estate Investing Notes – A Path to Riches

By now you know that real estate investing is one of the most versatile types of investments. You also know that a little money and a mighty, calculating mind are key factors to being successful in the competitive world of real estate. However, little would you know about how real estate notes can magically transform you from a small-time investor, into a worthy opponent of many of the big boys out there in the market.

Real estate notes are basically legally binding contracts between two or more parties. In these are promises to pay up a specific sum, so they are also called as notes payable. Quite often, these notes contain agreements on monthly payments over a specific amount of time. When it comes to investing, real estate notes can take one of three forms:

· Promissory Notes and Deed of Trust
· Promissory Note and Mortgage
· Real Estate Contract

Here's how they work: your property's buyer pays you a cash down payment and the balance is paid to you in periodic installs. However, since your buyer does not have the best credit record, you will provide the financing to your buyer just like a bank does, so you will be involved in owner-financing. If you believe that you are wasting your money this way, consider the fact that you can charge interest for these notes you provide. That interest is the profit of your investing venture and will provide you with a good cash flow.

However, since you are into discovering broader horizons of investing, you should sell those notes so that you can get rid of waiting for your money and just have a lump sum in your hands. As this may be of more interest to you, here are the steps that will help you achieve that:

1. Hire an attorney and have him draft a master broker's contract in order to set the terms of your transactions with buyers. This document should specify a finder's fee (based on the amount of the sale) that the buyer must pay once the sale goes…

Read More…. by Frank Berry

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The post Real Estate Investing Notes – A Path to Riches appeared first on Note Investing Seminars.

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