Investing Tax Free

Real Estate Note Buying Strategies

There are strategies to real estate not buying business. Buying real estate notes is risky and many factors need to be considered before you buy them. Below are the four real estate not buying strategies that will help protect yourself from the downside of real estate note investing as well as help you make money.

Strategies for making money in the Real Estate Note Buying business
  1. Buy and hold the real estate notes
    If you have enough cash to buy the real estate notes and hold them, you can live off the interest or monthly payments. However, most people who are investing in Real Estate do not have the cash available to do this to start off with.


  2. Buy and sell the real estate notes
    You can buy real estate notes and sell them for a higher price (at a lower yield). Be sure to check with an attorney for license requirement in your state.


  3. Buy the real estate notes with a partner
    If you don't have enough cash to buy real estate notes yourself, you can find someone else to put up the difference. You may have to split monthly income with your partner based on your agreement, but it may be a feasible way to get into the business inexpensively.


  4. Buy real estate notes and restructure them

Buy real estate notes and then make them better. (Increase the yield) For example, if you buy a real estate note, then go to the person making the payments and offer to lower the interest rate if they increase monthly payments. If they are currently paying $300 a month at 11%, offer to lower the rate to 8% if they can afford $400 a month or 3% if they can pay $500 a month. If the person paying the monthly payment is financially able, get them to go and refinance for a better rate. This will give you cash to go on to invest in a different property, expanding your investments quickly.

Alright, now you know the various types of Real Estate investing. What next? Other than the information at the bottom of this page, which is advice made up of our opinions on the matter, there are many Real Estate investing books written on the subject, as well as Real Estate investing Software tools.