5 Note Investment Strategies To Consider This Summer

This summer offers a flurry of note investment opportunities. What strategies will you add to your portfolio to keep things sizzling this season?

Summer is peak season in the real estate and mortgage industry. That presents many new opportunities to investors who want to restructure, secure their positions, and heat up their returns. Consider these five strategies to get more of what you want from your investments…

1. Diversify

Maybe you have just been getting going with a specific type of mortgage notes. Maybe you have mastered one niche and are doing very well. Either way, this is an ideal time to diversify to optimize your returns and security. If you’ve been focusing on second mortgages, you want to add some firsts into your portfolio, or vice versa. Maybe you’ve been focused on performing notes and it’s time to up your game with the deeper discounts and higher yields non-performing notes can offer.

2. Snipe Single Notes Locally

The ability to invest anywhere in the country is a great benefit of note investing. Yet, it can be rewarding on many levels to invest locally too, especially when it comes to first mortgages. Consider seeking out local mortgage notes and cherry picking the best.

3. Create Your Own Notes

Seller financing is trending again. It is still perfectly legal under Dodd-Frank, if you know the rules. This is a very in-demand service to buyers, and will only keep growing. Banks aren’t providing the financing needed in the market, and even those that qualify don’t trust them. Prices are high too, and rising rates, along with difficult underwriting processes, are making conventional mortgage financing unattractive to eager home buyers. By financing these transactions, you can create your own mortgage notes. They can be held for cash flow, sold off for lump sum payouts, or a combination of the two. Just make sure you know what makes a valuable note.

4. Partner on House Flips

Hands on house flipping may not be for you. Still, you can profit from this strategy by providing funding, and partnering with front line house flippers to get more deals done.

5. Take the Hybrid Approach

The new NNG Capital Fund offers a hybrid combination of the above strategies for note investors at all levels of their game. It includes first and second mortgage notes, and participating in the acquisition and repositioning of real assets. It is an easy, fast, and hyper-efficient way to engage across the market for safety and optimized returns.

Investment Opportunities

Find out more about investing in secured debt and real estate, go to NNG Capital Fund

Image by Gerd Altmann from Pixabay