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What is a Non-Performing Note

Real estate notes have become a booming business in recent years, sometimes even replacing a foreclosure, and one of the most popular forms of real estate notes are non-performing notes. But what is a non-performing note? Essentially, it is a real estate note that is in default or close to it. While it may seem risky, non-performing notes have become incredibly popular in recent years.
At Red Enterprises, we have been buying real estate notes for years. If you are interested in selling your real estate note to us, you can get a free quote online. Otherwise, let us explain what a non-performing note is and the advantages it can bring.

What is a Non-Performing Note?

As mentioned before, a non-performing note is a real estate note that has defaulted or is close to doing so. While this might seem like a risky investment, non-performing notes are actually on the rise. One of the reasons why they are so popular right now is the discount investors can get when buying them.
Since these notes have defaulted, or are close to defaulting, discounts are usually offered to those who buy the note. The buyer has a couple of options once they have purchased the note, either negotiate a new loan with the borrower to get a better return on the investment, or simply foreclose on the property. If the loan buyer wants to own the property directly, they can foreclose and buy the property.

Advantages of Non-Performing Notes

While they seem risky, there are actually a number of advantages to gain from non-performing notes. One of the most obvious is the discount you get on your investment. By buying a real estate note below the value it has, a buyer has the ability to have a higher return on their investment.
Another benefit of non-performing notes is eliminating the need for foreclosures on the bank's part. Banks are not in the business of owning and selling real estate, so avoiding this business is actually in the bank's interest.
Of course, there are many other advantages of non-performing notes that you will notice once you begin buying them. This lucrative business is waiting for you to get started!

Sell Your Real Estate Notes

Here at Red Enterprise, we specialize in buying real estate notes, including non-performing 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!