“A Newbie’s Introduction to Real Estate Notes”
We are very pleased to share this article about real estate notes by Red Enterprises who specialize in real estate notes and contract purchasing. This article is an excellent introduction to real estate notes, what they are and how to use them. Feel free to add your thoughts or comments below and look for more articles posted here by Red Enterprises.
A Newbies Introduction to Real Estate Notes
Those unfamiliar with notes should first understand exactly what they are. A real estate note is, by definition, “a written, signed, unconditional promise to pay a certain amount of money on demand at a specified time.” These contain certain terms that can be negotiated at times, and are usually paid for by those called “makers” and created by “holders” or “payees”.
These bonds can be complicated for those getting into real estate as a new investor, so it’s crucial that those who want to be successful in notes are fully educated about what they are and how they completely work.
Educating Yourself on Notes
As complex as notes may be, they don’t require hundreds upon thousands of dollars to be understood. If you see a commercial on television about a magic book that will teach you everything you need to know about notes for a few easy payments and shipping and handling, put your wallet away. There are a lot of online resources and guides on how notes work and how to be completely successful with them.
Seminars, books, and other paid for educational material DO exist out there, and perhaps they’d be what you find most helpful. However, with the Internet at your fingertips, becoming educated about notes, paper, money, and liens is easier and cheaper than it ever has been.
Get Involved with Groups
When it comes to “groups”, these can vary in a lot of ways. First of all, these groups don’t even necessarily need to be physical. Online forums exist where you can ask questions, get postings, and share information with others that can be of great help to you. As helpful as articles like this one and many others might be, it’s always reassuring to swap information with a real person who is willing to share their real experiences with you in a personal setting. Look for online meeting grounds on LinkedIn or Reddit, or even groups that are around your local area. Real estate and financial groups are growing in popularity as the market becomes more and more popular.
Investing While Working
Many first time investors like to have full time jobs and do real estate work on the side. If you can pull this off then power to you. Real estate is something that takes a lot of time and effort. Investing in notes can be tricky to do as a part time career or hobby, but it’s definitely doable. The take away is that you can keep your job and still make extra money from note investing and see that cash grow over time. Notes are essentially dignified loans, so as long as you have the ability to keep track of them and how much you’re profiting, you should be fine.
Your Own Money and Notes
A common myth is that you can’t invest and profit from notes without your own money. You can still invest in notes using OPM, otherwise known as “other people’s money”, and build up capital of your own that can be invested into notes. Note and loan businesses can be a little tricky the longer this chain goes on, but again: if you can manage it and be successful, do whatever works for you.