Why Buy Property when you can Buy Mortgages?
By: Judson Voss

Category: Money and Finance » Real Estate
Article Views: [319] (Old Stats: 343)

Property investing sounds like a great idea because you can make large returns on your money. However, you can make the same profits with less effort when you buy mortgage notes instead.

Everyone thinks that buying mortgages is some complicated process reserved for the professional property investors that have been in the business for some 30 odd years. However, the process of buying a mortgage note is easy and a great way to make profits. You have the chance to get a great return on your investment without involving yourself in a lot of maintenance and effort with the bank.

The great thing with owning mortgage notes is that you have all of the security of the real estate because if the homeowner doesn’t pay you, you can still foreclose and take the house back. So, you’ll just end up back in the real estate game with that particular piece of property, but at least you got some payments on the property over the years. On the other hand, as long as the homeowner pays you as agreed you don’t lift a finger, you just take the money to the bank.

This is because when you own the mortgage note, you essentially become the bank. Do you think the bank cares whether the homeowner keeps up the property they’ve mortgaged? No, all they worry about is getting their monthly payments.

As a mortgage note investor you don’t have to deal with The Three T’s.

· Tenants
· Termites
· Trash

When you become the bank, you’ll have a lot more free time. It’s much easier to be the bank, than to be the property manager or the property owner trying to sell.

It Takes Forever to Get My Profits!
True, you are waiting for monthly payments on the property and this may be the clincher for some property investors. Rather than a lump sum profit you must wait for your profits over the term of the mortgage, which can be decades.

However, if you’ve got the money to invest in several mortgage notes you’ll be able to live well and still make those profits on the monthly income you receive.

Most people worry about getting a mortgage. They never bother with the process of creating a mortgage or what’s in it for the banks. When you buy your first mortgage note you’ll become the bank and see why it’s good to be a mortgage note investor.