Note??

General Real Estate Investing
1

I have a Question?? I have heard so much about Real Estate Notes?? what are they and how do they work??

2

I have a 2nd 10% mortgage of $10,000 on a property I sold. I sell it to you for $7,500. You collect payments for the next 29.5 years earning $21,500 in interest over that time, plus your $7,500 back plus the other $2,500 of principal.

You just bought a real estate note.

3

In most real estate transactions there are 2 major documents.

  1. The title/deed

  2. The lien/mortgage/note

The Mortgage or Note simply is a lien placed on a property that says you owe money for that property. That is a note.

Now in our industry, NOTE, typically refers to Seller Financing. So rather than a bank receiving your payments. The seller will take payments over time.