Understanding Mortgage Note Investing: A Beginner’s Guide
As a beginner, you might be wondering what mortgage note investing really means. Well, simply put, when you invest in a mortgage note, you are buying a lien against a piece of real estate, and that physical asset is backing your capital. Let me guide you through some basics of mortgage note investing.
The Importance of Assigning Interest
At Secured Investment Corp, we assign our interest in the mortgage and the promissory note, which is essential for you to understand. You might come across people who want to buy a mortgage but not a note, or vice versa. However, notes and mortgages go hand in hand, and the note is the borrower’s promise to repay the loan, which is your assurance of getting your money back.
The Role of Mortgage or Deed of Trust
The mortgage or the deed of trust is the security instrument recorded at the county level, which identifies you as the lien holder against that property. It’s the physical asset that backs your investment, and in the event that the borrower defaults on the loan, you have the recourse to foreclose and take back the property.
Benefits of Mortgage Note Investing
Investing in mortgage notes can be a profitable venture. When you buy a note, you become the bank, and your investment is backed by a physical asset. Additionally, you can receive consistent monthly passive cash flow, and in the event of a default, you have the right to foreclose and take back the property.
For More Information
Interested in additional information about using mortgage notes to create passive income streams for yourself? Learn more about available properties you can invest into clicking the button below.
Director of Funding
Heather is a tenured employee that has worked in the Private Money Industry for over 15 years. Heather has been directly involved in the sale of over 100 million dollars in Trust Deed Mortgages and raised over 30 million in Secured Investment Corps High Yield Equity Funds. She has had experience in assisting underwriting, managing the Cogo and Servicing team in addition to Investor Relations.
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