| Which of these would you rather have: a | | | | investing real estate notes, and that means |
| fifty dollar bill today, or a one hundred | | | | that the competition to buy these notes is |
| dollar bill in a year? Most people will | | | | very high. A very good deal is a true boon |
| choose the fifty dollar bill, and who could | | | | to a buyer like you who is trying to build |
| blame them? A dollar in your hand is worth | | | | their real estate note investment portfolio. |
| much more than the potential of a dollar | | | | The competition makes it very difficult to |
| later to most people, and that is the exact | | | | find great deals in the market. |
| reason that real estate notes are generally | | | | |
| sold at a discounted price to buyers who are | | | | Private sellers can be found through |
| willing to wait the extra time to reap the | | | | intensive advertising, both in your own local |
| rewards of the investment. | | | | area and online if you choose to go that |
| | | | route, although the competition online is |
| A special derived formulais used by real | | | | especially fierce. You can build up your |
| estate note investors to determine the amount | | | | own real estate note investment business note |
| that should be paid for a note at any given | | | | by note over time and with much patience. |
| time based on the time value of money. | | | | This kind of business requires a great deal |
| Dollars tomorrow are not worth as much to us | | | | of start up capital, so make sure that you |
| as dollars today, remember. This discount | | | | have the cash that you need or a way to get |
| means that you are not paying the full value | | | | it, and be prepared with a fall back plan. |
| of a note (which would include the interest | | | | |
| charged on the account) but would instead be | | | | If you choose to hold on to a real estate |
| paying a lower rate based on the determined | | | | note for the future value of the money and |
| value of that money in the future and | | | | the potential investment of a regular income |
| factoring in the time that it will take you | | | | from the note, you are creating what is known |
| to get your money. | | | | as real estate cash flow. This form of cash |
| | | | flow is another great way to build up your |
| One great way to make money buying and | | | | finances if you can afford to sit on your |
| selling discounted real estate notes is to | | | | investment for a much longer period of time. |
| buy notes directly from the original owners | | | | |
| of an owner financed mortgage note at a deep | | | | Building up successful real estate cash flow |
| discount. Since the seller is a single | | | | requires a large amount of money that you can |
| person and not a company with experience in | | | | invest for a long period of time, but it can |
| the real estate note business, they might be | | | | pay off. The return that you get from |
| willing to accept less money than the actual | | | | holding a real estate note is often much |
| value of the note. You can resell the note | | | | larger than you could get from even the most |
| to other investors, still at a discounted | | | | profitable CD or government bond, even if it |
| price, of course, and make a profit on the | | | | matures more slowly, and it pays out slowly |
| difference between the cost to buy and the | | | | over time instead of being all tied up at |
| price at which you choose to sell. | | | | once until the end. However you choose to |
| | | | proceed, know that you are investing in a |
| This is the way in which most people decide | | | | very lucrative venture. |
| to make their money when it comes to | | | | |