How To Buy Real Estate Notes

If you are new to property investing and are looking for how to buy real estate notes, there are two very specific ways to go about it. There are a multitude of real estate note listings you can choose from, and there are brokers who specialize in both buying and selling them.

What a broker does is what the name implies. He or she brokers a deal between you and the seller of the note. Using a broker is recommended if you are new to this as there are many legalities that need to be taken into consideration that a novice will not know of. A broker receives a fee for the initial meeting of the buyer and seller, and he or she receives a fee for drawing up all the necessary paperwork.

These fees are nominal and they are well worth it when you consider the price you will most likely be paying for the note itself. People sell off their notes for the quick cash that it offers. This translates to an awfully good deal for the buyers because they are getting real estate for a bargain price.

The reasons why people sell off their property in this manner are almost too numerous to mention, but they are all legitimate reasons. Brokers can also arrange to find these notes for you as many of them have connections in the business. When you find a good broker and stay with him or her for a long period of time, they will get to know your needs in this area and get you good deal really quick.

When you get a good deal of experience in buying and selling notes, then you can just pore over the many listings that there are available. With the real estate market being what it is, these listing are going to be updated quite frequently. Depending on the area that you are looking for the notes in, it may very well be a daily update.

Being a major player in this game will require that you eventually go nationwide. Some people and companies do this all around the world. If you do, then you will want to focus your search on the major metropolitan areas. Even if you are looking for real estate in small towns, the listing will more than likely show up in the nearest major city.

If you know how to fill out the needed paperwork yourself, there will be no need for a broker unless the seller wants one. That is discretionary on their part and doesn’t really affect what you need to do on your end. If this is the case, then you would obviously be dealing with the seller’s broker more than the seller.

Once you get started searching for notes and learn where the best listings and brokers are, buying them becomes a breeze and will start becoming profitable for you. This really is a good way to make money because more people these days are looking for a quick cash out from their properties.

Buying Real Estate Notes From Banks

Buying real estate notes from banks can be a great investment activity. These notes are legally binding documents offered by a lender to a buyer of property, they spell out the terms and conditions wherein the buyer repays the capital. The actual payment amount, interest rate, and due date would all be indicated clearly in the real estate note document. Today, this type of investment transaction has become common place, banks often trade in these notes as part of their regular business practices.

Whatever the reason for wanting to buy a real estate note, it is important to carry out an adequate amount of research at the initial stage. Just as the diversity of properties in the country is vast, so are the types of real estate notes. Apart from purchasing the documents from banks, there is also the option of doing so from private lenders as well as brokers. Be aware that when purchasing a note, you will also take control of all the terms that are attached to it.

You can use a search engine to quickly identify a list of establishments that sell these investment documents, it would be useful to make a list of at least half a dozen institutions who you should then contact directly. When speaking with the sellers, find out why they are willing to sell on the note, perhaps they intend making some profit or maybe they are concerned that the value of the property is actually lower than what was initially believed.

Before you proceed with the transaction, request the bank to have at the ready all documents pertaining to the creation of the original note. You should also ensure that the loan balance is verified, along with other details such as the term of the loan payments.

Only move forward after reading the documents carefully to make sure that everything is fully in order. If you discover after putting your signature to the deal that there are variables that you were unaware of you may end up losing money.

As property prices can go down as well as up, the net worth of real estate notes can also vary year on year. Always carry out ample research into the current property market if you are to invest in this industry. If the property on the note was valuated in times of boom, today its market price may not be so great. There is always the option of getting a professional appraiser to check out the property so as you get a clearer picture.

Prior to signing a contract, try to negotiate the terms, you should get an attorney specialized in real estate to draw up an agreement which would need to be signed by yourself and the other party. Once the transaction has taken place, you should record the sale at the county clerk’s office in the area where the property is actually located, as opposed to in your home county.

Buying mortgage notes from a bank can be a great investment, though this is only the case if ample research is carried out. Never rush into making a purchase of any note, no matter how profitable it may seem at the initial stage.

5 Little Known Tips to Consider Before Buying Real Estate Property

It is quite a common saying that “owning a house is not for everybody;” while there is some truth to this statement, it is perhaps more correct to say that “owning a house is not for everybody right now.” When it comes to buying real estate property then the proper timing is everything. If you go out searching for a home to buy without making sure that your personal and financial situation is in order, then you could end up getting in trouble a few years down the line.

When you are positive that you are ready to buy real estate property, then there are some things that you must be aware of in order to give yourself the best chance possible of making a great purchase. Below are some handy little tips that you might want to consider before taking the next step.

Poor credit history

If you have poor credit history then you may want to really think if buying real estate is for you. It might be a better idea to spend the time repairing your credit score, rather than trying to get a loan with what you currently have. This can make the process a whole lot easier.

A lot of debt

Do you find the majority of your wage goes to paying off debt? If this is the case then it might not be the best time to be considering buying a home. Just like if you have poor credit history, it is probably a good idea to spend the time to get the debt more under control. Once you have done this then it will be much easier to borrow money from a lender.

Are you happy?

Before buying real estate property, you should always ask yourself some important questions. For example, are you really happy in the area that you are currently in, or do you desire a move to another part of the country in a few years time? If you find this to be the case, then buying a house in your current area might not be a very good idea, and it is probably better to just rent for the time being until you can make a better decision.

Be prepared to work

When you buy a new home, there is sure to be a lot of work that needs carrying out. The truth is, the majority of homes need constant maintenance, especially when you first buy them. This is one of the harsh realities that new homeowners often find after they’ve just bought their house. Are you ready for this type of commitment?

Do you have enough money?

Before buying real estate property, you have probably made sure that you have enough saved for the down payment, but are you prepared for all of the other costs that will appear when you first move to your new home? In reality, these costs can quickly mount up, and if you’re not prepared for them than they can come as a nasty surprise. If you are unsure about whether you have enough money, it may be a good idea to wait a little while until you are in a better position.

Guidelines to Help You When Buying Real Estate

If you are not aware of the things to be considered when buying real estate, it is more likely that you will be duped and will feel sorry in the end. Following are some guidelines which you can follow when buying real estate.

Research and gather comprehensive data on the real estate market. Lack of knowledge can lead you to nowhere, thus you need to equip yourself with adequate information on real property and apply it when choosing your house. Knowing the rules of buying real estate will assist you in your search for a house.

Picture in your mind the kind of house that you want. The real estate market offers various kinds of houses. With the so many designs and styles, you can be sidetracked on the exact house that you are looking for. The Internet offers plenty of options to help you decide prior to your purchase.

Look for referrals from your relatives, friends, co-workers, etc. If you have a new neighbor, you can ask him where he got the information on the house that he bought. People you know are one of the best sources of information apart from the Internet. They can lead you to the best real estate agents.

When you have finally found the real estate broker, set an appointment and discuss your immediate needs. You will know if you have found a reliable agent by checking on their previous records and meet up with them. Set the meeting in their office so you will know if they are bogus or not. Read the certificates posted on the office walls and look for their business license. If there are clients waiting, you can talk to them. Do not agree to meet them outside. The first meeting should always be in their office. You also need to check on their charges, if there is any. It is customary that the agent who sells the house and the agent who referred the buyer gets 2.5% each of the selling price from the seller. Therefore, the buyer is freed from this responsibility.

When you have finally decided on the house that you wanted, set an appointment with the real estate company so you can see the house physically. Once you are there, check on the surroundings if it is suitable for you and your family. Check each room, the paint, the ceiling, the walls, floors, the bathroom and toilet, etc. Check the outside premises, too. Make sure that the necessary furnishings or accoutrements are in proper order. Do not readily give any deposits or reservation fees without making a general check of the house.

Once you are finished inspecting the house and were pleased and happy with it, you can talk to the realtor about its prices. Once you have agreed on a certain amount, your realtor will process the documents like the deed of title and sale as well as other pertinent ownership documents. Before signing the documents, ask a lawyer to review it. Some legal terminologies may be difficult for you and that can cause you problems in the future. Ask the lawyer to explain those points that are quite vague to you. Ensure that you fully understand everything that is written in the documents before signing them. This will make certain that your house is protected and that you will not encounter any problems when the sale ends.

16 Tips to Buy Real Estate Successfully

1. Do not overanalyze. You may lose a lot of great opportunities to make great deal of money. Start making offers.

2. Get the property under a contract first with a safety clause.

3. Ask fellow investors, real estate broker about the property value. If it makes sense go ahead with the purchase.

4. If you are buying for a quick flip neighborhoods do not matter. What matters is the $$$ you are going to make.

5. Your perfect buy should be a house/condo/building in excellent condition and good neighborhood.

6. Your Second choice should be a cosmetic fixer in a good neighborhood.

7. Inspect the property. Try to get as many things fixed by the seller as possible. Check the neighborhood. Drive around the block. Look at the houses in the neighborhood, what is their condition. Look at the cars parked in the street. Old cars normally can tell you a lot about the neighborhood. Trash on the sidewalks can spell less then great neighborhood. Which in turns means you should buy and sell quickly (most of the time). Renting in those neighborhood could be challenging, especially for the new investor.

8. Use a real estate agent or broker. My first great deal was found by a broker. Try to get access to the MLS so you can look for deals yourself.

9. Shop around for Financing. My experiences with the loan officers tells me one thing. Email them your questions and ask them to email you back their answers or put them on paper. They tend to always change terms and rates (though illegal), and put junk charges.

10. Try to reduce your Title/Escrow charges review them with an experienced investor or real estate agent.

11. Use a real estate attorney for your foreclosure/pre-foreclosure purchases.

12. You can check these free Real Estate Investing Educational sites:

3. Make connections with other fellow real estate investors. You can learn great deal first hand experience from them. One peace of advice alone could be worth thousands for you. So if you like challenges and lifetime learning Real Estate Investing is a great field to work and have fun.

14. Advertise yourself. Get business cards hand them to interested people. Place ads in the newspaper and use whatever other means of advertising you can think of.

15. Use the right Real Estate Forms when you buy and sell. If you don’t have any forms here is a website you can print for free:

16. Do not be afraid to buy real estate. Fear and lack of knowledge are the number one factor for failure.

This article can be published by anyone as long as the reference box remains intact and all links are kept live.

Copyright © D. S. Peter is a successful real estate investor for over 14 years.

Make Money Buying Real Estate

For three years, real estate was every investor’s darling. Double digit appreciation paired with low interest rates made real estate investing appear to be a no-brainer. However, the real estate investing playing field is littered with the bodies of house flippers and cash flow mis-calculators. The next few years will be easier to make money buying real estate than the previous “boom” years. The question is, who will recognize the opportunity and take advantage?

The opportunity to make money buying real estate lies in the overwhelming need for real estate buyers. In a classic sense, investors plus home buyers equal demand. However, in light of the credit crisis, mortgage disaster, and housing bust, for the first time since the Depression their is a true need for investors to buy property. Foreclosure has become a staunch reality for thousands of Americans. Foreclosure is looming for millions more. Banks are completely overwhelmed with late payments, loan modifications, foreclosures, and Bank Owned Real Estate.

Here is the most commonly over-looked key to the current real estate investing situation: bank rates. Go check out the current mortgage lending rates. They are still in the low 6% range. Historically, that rate is rock-bottom. Collectively, American’s have been taking these rates for granted for five years now. If you have a real estate agent worth their salt, or a HP12C financial calculator of your own, calculate what your money buys at 6.25% vs. 9.25%. It is staggering.

These rates will not last. How do I know? It is very simple. I know that they will not last, because they never do. Rates go up and rates come down. They bottom out just under 5% and go as high as 21%. They average out somewhere around 9%. Our rates have been unusually low for years. It will not be long before they start creeping up. As rates creep up, you can buy less home for the same monthly payment. So, even if values are sliding moderately, you stand more to lose by waiting out the market to find the bottom of the real estate market.

To make money buying real estate be sure to do your homework. Knowing where the opportunities are is one of the most important pieces of research to uncover. All market conditions provide opportunity for the savvy real estate investor. This market is becoming so easy, the savvy part of the equation may soon be optional.

Why Buy Real Estate On The Water

How would you like to live on the water? This is a dream that most people want to fulfill at some point and that is why I highly recommend buying real estate on the water. Not only will this give you a better home right now, it will also be better when it comes time to sell it. Just keep in mind that real estate on the water is very limited and that is why you need to get it now and hold onto it as long as you can.

Why Buy Real Estate On The Water

Better View – One of the reasons why you should buy real estate that is on the water is because it will come with a much better view. When you are looking at another house right in front of you that won’t get you the biggest price tag, a view of the water will though. This is why a lot of people like to buy real estate on the water because they know that once they are done enjoying it, then they can sell it for a huge profit to somebody else that wants to enjoy the water just as much as they did.

Higher Resale Price – Did you know that a view of the water will yield you a much higher retail price once you are ready to sell it? This is a good reason to buy houses on the water because you will be able to get more out of it when you are ready to sell it. Just keep in mind that it will cost more at first but it is well worth it in the end.

Always Wanted – Being that real estate on the water is in limited supply, they are always wanted and because of that you can get a great offer if you own a nice property. This is why many people look for real estate on the water because they know that they might spend a little more for it at first but once somebody comes along and wants it, they will more than get their initial investment back.

Buying real estate on the water is not for everybody and it will matter where your property is located. If you are buying a piece of property on the back of a swamp, then that might not increase the value that much, however, if you are buying a house on the water in Malibu, then the amount will increase drastically. Just know where is the best place to buy a house and how important water is in that area.

Discover Some Rules For Buying Real Estate With Roth IRA

If you are interested in buying real estate with Roth IRA funds, take some advice from an experienced investor. There are successful examples of a roll over IRA buying real estate and there are some failures. Learn from the mistakes of others and you can be one of the latest success stories.

Everyone makes mistakes, but when it comes to buying real estate with Roth IRA money, mistakes are costly. Let’s start with choosing the wrong custodian and go from there.

Here’s an unsuccessful example of a roll over IRA buying real estate. A man chose to take a roll-over from his traditional account and chose a custodian that offered self-investing. He deposited the funds into the account well within the 90 day time period to avoid IRS penalties.

Once he started reading the fine print, he realized that the custodian he had chosen took 45% of his earned interest on un-invested cash balances. He also learned that for each transaction, he would be charged fees ranging from $25-$150. He did a little research and found a different custodian that only charged a reasonable annual fee, while offering more investment options.

When buying real estate with Roth IRA money, you will almost always have an “un-invested cash balance” and you are likely to conduct numerous transactions per year. So, per-transaction fees can really add up.

The man truly believed that a roll over IRA buying real estate was the right choice for him, but he realized that he had chosen the wrong custodian. Instead of transferring the funds, he took another roll-over that year.

The IRS only allows one tax-free rollover per year. So, the total dollar amount of the fund had to be included in “other income” at tax time. The result was a devastating bill that almost bankrupted him.

This man, whose name I won’t mention, made two mistakes. First, he didn’t read the fine print or shop around BEFORE he signed up with the custodian. Second, he failed to read the IRS rules for roll-overs and was unaware that transfers were a better choice.

Breaking the self-dealing or indirect benefit rules is responsible for some of the failures, when it comes to a roll over IRA buying real estate.

Buying real estate with Roth IRA funds must be kept an “arms-length”. Your account cannot buy from you or for you. Those are some of the rules that you need to know before you begin.

Knowledge is everything when it comes to the success of a roll over IRA buying real estate.

A different man grew the value of his account from $20,000 to over a million in less than three years. He started out slowly by flipping vacant lots, making $1000 profit on each transaction.

Now, he holds the mortgages on several properties. He’s only one of the success stories.

Buying real estate with Roth IRA money can be highly profitable, as long as you get the information that you need, ahead of time.

Considering today’s economic environment, selecting IRA real estate turnkey solutions can be the best investment strategy for building your retirement wealth.

Visit my website now to learn more about investing your Roth IRA money in real estate. Using a turnkey solution can be the best investment strategy to accomplish your financial goals.

How Blogging Is Changing The Face Of Real Estate Marketing

The Internet is revolutionizing a lot of aspects of human endeavor these days, from dealing with social relationships, selling products and services and dealing with real estate.

For real estate marketing, the stylish thing to do these days is to get a blog now. Funny as it may sound, many will be asking why should I blog?, and what’s a real estate blog by the way?”

Technically, the term “blog” refers to a short cut reference for “Web Log”, just like a ship captain’s or night watchman’s log. Before, these blogs were viewed as personal journals posted on the Internet for everyone to read, and upon which readers could also comment on.

Blogging started out with very limited groups or circles of readers, and was more of a personal journal stuff, which had photos, information and links to things of mutual interest. These days, one may have a personal journal blog and post his or her personal thoughts, and even political or social views. One could also place links in their blogs to review books or movies. A lot has evolved with blogging, so much that even major TV networks, like CNN, BBC and others, which regularly cover comments made by people who post political and social commentary on their blogs.

How Blogging Helps In Real Estate Marketing

Since blogs have are more personal touch, just how beneficial could it be for real estate businesses? Blogging should be included as one of the primary tools that a broker or property has in their marketing arsenal.

By having a real estate blog about your location, events, updates and commentary, a local real estate agent can start to position himself as a qualified “expert” on a specific area, and knows the real estate trends there. Those who will read your blog can then “subscribe”, just like regular magazine or newsletter subscriptions, and have your real estate blog reviews, updates and articles delivered to them daily in their “news reader” or e-mail inbox.

What Info Should You Include In Your Real Estate Blog?

If you think it sounds a bit confusing, don’t worry, as there is a lot of information that the average commercial or residential real estate Website visitor wants on your site. Your blog should be constructed in such a manner that the format is precisely crafted to suit the information that your site visitors would be looking for, like local property market news, knowledgeable commentary on the local market, updated statistics and your expert analysis of data, area information in the context of neighborhood locations, complete info about your services in the context of their needs, and how you could help them with home buying and selling as specific to your local market.

Basically, it’s rather inexpensive or almost free to set up blogs. A lot of the info on your Web site can be converted into articles for the blog. Many are now saying that as much as 90% of all real estate sites are totally ineffective in generating sales for the agent or brokerage firm, because as there are hundreds of thousands of real estate Websites out there, most are just static billboards which scatter unwanted information to their readers, and the sad fact is that most of the info presented on these sites are simply the ones that visitors do not want to read or are not interested in.

Do Your Real Estate Signs Include The Right Info


Do you know what information on your real estate sign will get you the most results? We do. Don’t gamble – design a custom sign that says all the right things.

What are “all the right things?”

It’s fairly obvious that certain things should be included on your real estate sign, but you do have options. Quite a few, as it turns out.

Because we have 25 years of experience in the industry, we know what makes an effective real estate sign. And we’re happy to share our secrets with you.

An effective real estate sign starts with a plan:

What is your main attraction? It may be the well-known and trusted real estate company you work for. Maybe it’s your name – a lot of people know you. Or it might be the size of the houses you generally sell. Whatever your biggest appeal is, use it.

Perhaps you know a lot of people in your relatively small community. You’re on the PTA, the town council and you coach little league every summer. In that case, you’ll want to sell yourself. Make your name larger than any other text on the sign. Include a professional picture of yourself.

The key is “supersizing” the most important info on your sign, whatever that may be. Then move on the other info you’ll want to include.

What info do I want to include?

You have options. Here they are:

· Company name: Unless you are an independent realtor, you’ll need this on your sign.

· Your name: “Sam Green” works, but so does “Call Sam.” It depends whether you want to seem casual or high-end. Consider the general price range of your houses.

· For Sale/For Rent/Foreclosure: Duh.

· Phone number: You can use your office number, but we think it’s a better idea to use your cell number. This way, you can speak to potential clients 24/7.

· Website/email: You might want to include both, but one is really all you need. Your website is preferable – that way clients can browse your other houses and easily find your email.

· Photos: If you don’t want to your face on a sign, consider a picture of a house, a set of keys or a welcome mat. People remember a sign 300% better if it has a picture on it. And opt for color over black and white.

· Size of the house: You might want to include specifics such as “2 bed 2 bath.” It can peak interest if that size is just what the client has been looking for, but it’s certainly not essential.

· QR code: A “quick response” code is something you’ll start to see more and more on real estate signs. Basically, a QR code is a small graphic that anyone with a smart phone can snap a photo of and be automatically directed to your website (or a video on you tube, or an article you wrote, etc.). It’s a quick and tech savvy way to bring in more clients.

A few other considerations

There are some things to keep in mind when choosing which info to include on your custom real estate sign.

Don’t overcrowd your sign. Excessive text is overwhelming to a reader, who may just look away. Keep your sign simple and uncluttered.

Contrasting colors will draw more eyes to your sign. Black on yellow, for example is a great option. You can read more about that here.

A distinctive size real estate sign will help you stand out. Most companies offer only standard sizes, but good companies offer frames that will get you noticed.

If you’d like help designing your real estate signs, ask a graphic designer to help you out.

To learn more about custom signs, Ms. Klein invites you to check out, where “Signs with Class are Delivered Fast.” TheSignChef is constantly developing free-to-use sign design software, custom sign decision-making tools, and How-To videos to make your sign buying experience efficient and your new custom signs effective.