There are billions of dollars of outstanding debt from real estate notes, also known as mortgage notes, on the open market. You can often buy these distressed notes at a discounted rate and receive a higher return on your investment, but first, you need to know where to buy non-performing notes. Buying non-performing notes can be done through a bank, credit union, or even private note holders, and doing so can be incredibly advantageous.
At Red Enterprises, we focus a lot of our attention toward buying non-performing notes and other real estate notes. If you are looking to sell your real estate note, you can get a free quote from our website. Otherwise, let us fill you in on where to buy non-performing notes and the advantages buying them can bring.
Where to Buy Non-Performing Notes
There are a number of sources to buy non-performing notes from. Obviously, banks and credit unions are a good place to start as they prefer to sell real estate notes rather than force a foreclosure. This is because banks and credit unions are not in the business of buying and selling real estate and would prefer to sell a non-performing note rather than own the property.
But banks and credit unions are not the only sources of non-performing notes. Private note holders are another common way to go about buying non-performing notes. Private note holders are individuals who own a real estate note rather than a bank. Once you buy a real estate note, you will become a private note holder and will be able to make transactions with potential note buyers like this as well.
Advantages of Buying Non-Performing Notes
While non-performing notes seem like a high-risk investment, they are incredibly popular right now because of the potential for a higher return on the investment. This increased potential for a higher return is one of the best advantages of buying non-performing notes.
Another advantage of buying non-performing notes is the decreased chance of foreclosure. Banks and credit unions, as mentioned before, do not like owning real estate property and by selling non-performing notes, the bank does not need to foreclose the property. However, the note buyer has the option of foreclosing on the non-performing note as a way to buy the property themselves at a reasonable price.
In short, there are a number of advantages that comes with buying a non-performing note and this lucrative industry is waiting for you!
Sell Your Real Estate Notes with Red Enterprise
Here at Red Enterprise, we specialize in buying non-performing notes and other real estate notes. If you have any questions about selling your real estate note, you can contact us online or give us a call at 307.213.9095 to get in touch with us today!