The current economic situation has made many people look for different ways that they can realize some serious money just in order to get by. There are others who are in a better financial position and want to take advantage of the financial situation to make an investment that will give them a long term return. Many of these people are turning towards the mortgage note buying business seeing it as a sound investment. This is where the third group of people comes in: the ones that deal in note buyer scams. They do not often target individuals who are looking to sell their mortgage, but see the ones who want to become a note buyer as potential targets.
If you are serious about wanting to become a note buyer, it makes sense that you do everything you possibly can to find out what it is you will getting yourself into. The potential for a scam here is huge: there are many mortgage note classes run by people who claim that they are making an absolute fortune out of note buying, and want to share their expertise with you – at a price of course. These classes should be avoided. The people who run them may be making a fortune but you can be sure that a lot of it comes from running classes like these.
Think about the reasons why you want to become a note buyer. Investing in property may be a good investment, but that is not what you will be doing. Instead you are investing in a mortgage that inherently carries risks. The person who has to pay you may renege on the deal for a variety of reasons and you will be left with a whole load of debt. You are also going to tie up your money for a very long time so you have to be sure you are in a position that can carry that.
Becoming a note buyer should never be considered unless you have enough cash to uphold it. It has to be a cash sale because there is absolutely no point getting a loan to buy a loan. Even if you can get favorable rates, you could end up with two expensive debts to repay if something goes wrong and the mortgaged person cannot pay you.
If you are still determined to become a note buyer, have a look at any real estate that you already own, particularly if there is no debt on it and you were planning on selling. You could create your own mortgage note and whoever buys your property can give you their money every month instead of to the bank. This way you will have no worries about having to finance your new career as a note buyer. The only thing you need to check out is the credit worthiness of the person who will be buying your property – but you would have to do that with any mortgage notes that you take on, anyway.