Creating Notes To Buy Investment Property
Did you know that by creating a real estate note you may purchase some fantastic deals without using any of your own money? Writing notes is like creating money out of thin air. How do you create a note? The easiest way to create a note is by having your title company or real estate attorney do it for you (the title company is usually less expensive). You will only need to provide them with some basic information. How do you use a note to purchase real estate? When someone is desperate to sell their home they will be willing to listen to just about any creative financing technique that will help them solve their problem. You may offer to pay-off their existing mortgage either by taking it subject to or getting your own first mortgage to cover that amount—then give them a note for the balance of the purchase. You see, notes are just paper that will give you control of the property. This is a way for you to buy real estate without much cash or credit. Your exit strategy is to sell the note to another buyer for a higher price, pay off the actual owner and you keep what is left over for profit. Master this method and you will build a large portfolio or investment property that you can hold or sell.
