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