I Hear There Is More Profit In Notes Than Actually Owning The Property. Is This True And Why?
When you own the note, you control the property and the property owner pays you just like paying the bank (you are now the bank). In today’s market, with all the bad debt and upside down properties, many notes can be purchased at a discount. Being a property owner, you have to deal with the repairs, tenants, problems, etc. which can be costly and can eat into your profits. With notes, you collect the payments and if the homeowner chooses not to pay, you move to foreclose on the property. We deal with notes that have a good equity spread. If the property has to be foreclosed on, there is still money in the deal which, in many cases, can turn a higher profit. We use foreclosure as the last resort though. We only take possession of someone’s property as a very last resort.