We are constantly working all the avenues we can as investors to make money from real estate. Many people get turned off by the concerns about the hassle of managing the repairs of rehab work. Others don’t like the idea of having to deal with renters who might call them in the middle of the night with a plumbing problem. We understand that there will always be some kind of problem that we are solving to help others and to help us earn an income.
Let’s consider an area of real estate that doesn’t require rehab or late night repairs.
Note Brokering:
How to find notes:
There are many sources online that we can pay to get a list of personal note holders.
If we want to find them without paying a fee we need to go to the county records to look at the public records on real estate. There we can look up properties based on the counties search tools. Many times, counties will have this information on a county website. We can do a search for address after address and focus on who the lien holders or mortgage holders are on that particular property. Most will list bank after bank that holds the mortgage on each property. Look at the rare ones that list an individuals name or family trust. These are the properties that were sold by seller financing. We can either send a letter to the address listed or do further research to find a phone number for the note holder.
What to ask the note holder:
Tell them who you are, and that you found that they are the note holder of a certain property from the public county records. Ask them if they have interest in selling off their note for a discounted one lump some of money. This is all about finding a motivated note holder. If they have interest, get all information about the property and the details of the payments and interest rate that they receive. Let them know you will get back to them when you can find a buyer for their note.
Where to list this note:
Do a search online for “note selling, note buying, and note brokering”. You will find many websites where notes can be posted to sell. One could also list the note in the classified section of the newspaper.
We only want to list generalities and never the address of the property. If we get an interested party we can give them more details about what is owed on the note and interest rate etc. We need to factor in the cost of the note changing hands through the services of a title company or real estate attorney. We should also factor our brokering fee.
Finalize the deal:
Talk to the note owner about what their final lump sum of funds would be after the discounted asking prices, the transfer fees, and your brokering fee. The deal can be finalized and all benefit. The seller of the note, the buyer of the note, and we receive a brokers fee. This is a process that can take time to get a system down but it can result in funds that we can make without the typical hassles of real estate.
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