Finding Mortgage Note Investments That Still Work

Are there still mortgage note investment opportunities out there? If so, where are they hiding?

The market is constantly changing. A lot of newer investors or those still on the sidelines watching the field see news about notes being harder to get or trading with lower discounts, and wonder if there is still room and time for them to take advantage of this asset class.

There will always be a default rate. That means there will always be non-performing notes. There will also always be a need for more liquidity, and in turn notes trading hands. In fact, even in parts of New York pre-foreclosures and bank owned REOs have been surging again.

I still see a lot of people I met back in 2012 who are still waiting for a magical unicorn to appear as a sign to take action. That’s not going to happen.

I wouldn’t be where I am today unless I learned to dig in and find opportunities, unlock profit and work out notes, and took action.

It is true that holders of the big pools of mortgage notes have become pickier about who they sell to, and are sticking to much larger trades. Yet, even if you’ve only got $250k to invest in notes there are a lot of opportunities out there.

Finding the Note Deals

One great way to find smaller pools of notes, and even individual notes today is to keep networking and attend events.

There are multiple note events around the country every year. There are local real estate investment and REIA events all over the place every month. I’m always picking up notes at events.

The big banks are still selling too. I’m seeing a good amount of large trades, though they may be in pools of $100M or more.

It’s vital to keep marketing too. When you stop marketing for deals then you are going to stop finding them. If you are relying on regular trades and workouts for income, that can be a financially disastrous situation.

If you don’t have all the money you want, or just have a very low risk tolerance, then you can always leverage risk and capital with joint ventures. This can also be a great way to learn different asset classes, areas, and types of notes and scenarios you can work out.

Keep an Open Mind

I used to run mastermind groups on mortgage note investing. I used them to show people first hand how to handle different variables, like bankruptcy. I even structured pools with some of these features to walk groups through the process and how to profit from them. I know many people who are very grateful for having had their eyes opened to the opportunities.

One of the biggest mental roadblocks I see that consistently holds people back from enjoying the rewards of mortgage note investing, is trying to keep themselves cornered in their own backyards. Others have heard that non-judicial states make for faster foreclosures and try to stick to those. Though if you get out of your comfort zone and at least look into other states, you might find far more attractive deals, and a lot less competition.

There are No Excuses

This is not a get rich quick business. Some will get out when they see the work required. Yet, if you are willing to learn new things, there plenty of opportunities. There will always be available excuses if you really don’t want to improve your life. Though, if you are really passionate - you will find the deals and ways to work them out.

Investment Opportunities

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

Photo by Jonathan Francisca on Unsplash