One of the ways that you can generate a significant income and steady cash flow is from mortgage payments of performing or even re-performing notes. There are also opportunities where you can generate substantial income through refinances, cash payouts, back payments or arrears, the selling of the note, the selling or the home, or wholesaling. The reason you can make such significant returns on your investment is because you can often purchase these types of debts at deep discounts. It isn’t uncommon to purchase these notes at discounts that range from 50-90% off what the current market value of the asset current goes for. Here is an example of the potential cash flow generated from only a $50,000 note:
Debt Owed – $50,000.00
Discounted Purchase Price – $10,000.00 (80% discounted)
Expected Cash Flow from Payments – $150.00 each month (18% return)
Investing in Notes from Across the Nation
One of the biggest benefits to generating cash flow from these types of investments is you are not limited to purchasing notes that are in your city. You can easily diversify your portfolio by spreading out your investments across several states. This will limit your risk and protect your investments in the long run. Similar to spreading out your investments in a stock portfolio, you want to have an assortments of different types of investments. Purchasing in several states will help to protect your overall cash flow from a major disaster.
Avoiding the Hassle of Tenant and Property Management
The biggest advantage to buying these types of notes directly from the homeowner you cut out the middleman and you deal with them and their payments. You do not have to be concerned about any of the following:
– Problem tenants who continue to miss making their rent payments.
– The maintenance required to treat the premises for pests and termites.
– Never a need for you to drive over to that property. You do not have to use any of your valuable time to go to the property to check up on things. If you want to truly work from home, this is the perfect types of work for you. Buying notes allows you to focus all your efforts on getting the best possible deals out there without ever having to leave the comfort of home.
Simplifying and Multiplying Your Lead Generations
The best way to multiply your lead generations is to work on creating valued connections with different banks or companies that are in charge of selling these types of notes. When you focus your attention at building these types of relationships, you open up the possibilities at getting the notes at bigger discounts and this allows you to buyer even larger quantities of notes. Once you can begin investing on an even larger scale, you can diversify your portfolio even larger to protect your overall investment. This will increase your profits and lower your risks.
Taking Advantage of Potentially the Largest Opportunity in Real Estate
The latest economic recession has placed a significant amount of non-performing assets in the banks inventory. Today is the day to buy those distressed debts and grow your cash flow.
