Non-performing notes are a type of real estate note, also known as a mortgage note, that is close to defaulting or has already done so. While this might seem like a risky investment, non-performing notes are actually a popular investment right now because of the potential for a higher return on investment. You should always consult a professional when looking for non-performing notes for sale as there are a number of aspects to consider before doing so.
At Red Enterprises, we focus a lot of our attention on buying real estate notes, but we also strive to educate others as well. If you are looking for non-performing notes for sale, there are a number of sources you can look into. But before you start the process of buying a non-performing note,let us fill you in on what to consider before you make the deal.
Where to Find Non-Performing Notes for Sale
If you are looking for non-performing notes for sale, there are a number of sources you can look into to find the right deal for you. Banks and credit unions, for example, prefer to issue non-performing notes rather than foreclose on a property that has defaulted. Often times, you can find non-performing notes from these entities for a reasonably low price, sometimes as low as 10% of the value!
Of course, banks and credit unions are not the only sources for these mortgage notes. Another option is to find a private note holder that has a non-performing note for sale. With this source, you will have a little bit more room for negotiation on how much to pay to buy the note. Of course, there is also a greater risk if you choose to go this route as private note holders carry more risk than a bank.
What You Should Know Before you Buy
If you are looking to buy a non-performing note that's for sale, you should consult a professional as there are a number of things to consider. Some non-performing notes require a higher percentage payment and, depending on the condition of the property, it could be difficult to get your money back.
Additionally, you should consider the person making the payments on your non-performing note. They have defaulted on their payments for a reason, and you should take that into consideration before you buy a non-performing note.
Also, you should consider what you plan on doing with your non-performing note. Many note holders buy non-performing notes with the intent of foreclosing the property to buy it themselves. If this is something you plan on doing, you should be sure the property has been taken care of and that you will be able to get a return on your investment.
Sell Real Estate Notes with Red Enterprises
If you are looking for non-performing notes for sale, Red Enterprise can help you get the right deal. If you have any questions or would like to sell a real estate note, you can contact us online or give us a call at 307.213.9095 to get in touch with us today.