Thinking about investing in real estate note? Not sure where to find good quality mortgage notes for sale? Look no further! In this comprehensive guide, we'll explore various sources where you can find thousands of mortgage notes for sale right now. Whether you're a seasoned investor or just starting out, this guide has something for everyone.
Deciding What Type of Mortgage Notes to Buy
Before diving into the world of mortgage note investing, it's essential to understand the different types of notes available. There are performing notes and non-performing notes, as well as 1st position and 2nd position loans. The type of notes you choose should align with your investing objectives and risk tolerance.
Mortgage Notes for Sale Online
When it comes to buying mortgage notes, the internet is your best friend. There are several online platforms that connect buyers and sellers of mortgage notes. Here are a few noteworthy options:
Garnaco Investor Program
Garnaco is a real estate investment business with its own lending investing program. They offer 1st position performing notes and private lending investments that help investors earn passive income. Garnaco also sends out details of new mortgage notes for sale every Thursday in their Priority Investor email newsletter.
Paperstac
Paperstac is a fully digitized mortgage note transaction engine. It allows anyone to buy and sell mortgage notes online, providing a user-friendly experience from listing to closing. This platform is an excellent option for first-time mortgage note buyers who need guidance throughout the process.
Notes Direct
Notes Direct is another online platform that facilitates buying and selling mortgage notes and real estate. They offer a wide range of mortgage notes for sale, including performing notes, non-performing loans, and physical real estate. The platform also allows pre-vetted buyers to submit qualified offers.
Loan MLS
Loan MLS boasts a membership of over 20,000 qualified note investors and mortgage note buyers. On this platform, you can find mortgage notes for sale and even work with loan originators to fund new loans. The best part? Loan MLS does not charge any fees or commissions, making it a cost-effective way to buy notes.
Watermark Exchange
Watermark Exchange operates a mortgage note trading desk where institutional investors and banks can list their notes for sale. They have a vast inventory of notes and offer a unique map feature to search for notes geographically. Watermark also provides due diligence processes and investment forecasts for each note.
Note Trader Exchange
Note Trader Exchange is an online platform that connects mortgage note sellers with buyers. They offer several note buying options, including the ability to buy now, place a bid, or make an offer. The site's 6-step closing process ensures a smooth transaction using a licensed title/escrow company.
CREXi
CREXi is an online marketplace and MLS that lists commercial real estate and mortgage notes. If you're looking for commercial properties or larger real estate notes, this platform is a great place to start.
Note Investing Crowdfunding Websites
If you're looking for passive income from mortgage notes without the hassle of direct investing, crowdfunding platforms offer a viable alternative. These platforms allow you to invest in mortgage notes alongside other investors. Here are a few notable options:
Peer Street
Peer Street connects buyers with notes from leading loan originators. You can invest with as little as $1.00, making it accessible to a wide range of investors. While the returns may not be as high as other methods, Peer Street has a proven track record of returning significant interest to its investors.
Patch Lending
Patch Lending allows you to invest in real estate debt alongside other investors. The company sources deals, performs due diligence, and posts them online for investors to fund. Patch Lending's partnership with borrowers and occasional investments in promoted deals make it a unique crowdfunding option.
Fundrise
Fundrise offers the opportunity to invest in real estate notes alongside experienced investors. Their platform provides a done-for-you service, making it suitable for passive investors. With a minimum investment of $500, Fundrise offers SEC-regulated investments.
Lending Home
While Lending Home primarily sells mortgage notes to institutional investors, they also offer platform notes for individual (accredited) investors. Their minimum investment is $50,000, but you can invest as little as $5,000 in individual loans. Lending Home's AutoInvest feature reinvests monthly interest checks into new loans.
Note Brokers and Funds
If you prefer working with note brokers or investing in note funds, there are several options available. Note brokers buy mortgage notes wholesale from banks and large investors and offer them for sale to the general public. Note funds, on the other hand, use investor capital to buy mortgage notes and provide returns to their investors. Here are a few noteworthy brokers and funds:
Paper Assets Capital
Paper Assets Capital operates a trade desk and offers a note investment fund. You can buy individual mortgage notes directly from their trade desk or invest in units of their note fund. The note fund offers fixed returns of 8% to 12% annually over a 36-month term.
Fusion Notes
Fusion Notes is a Colorado-based mortgage note investor that offers the opportunity to invest in their mortgage note fund. They also provide training and education for note investors. Fusion buys and sells their own notes, making them a reliable source for mortgage notes.
Equity First Funding
Equity First Funding is a real estate and note investment company that buys and sells notes for its own account. They buy real estate and sell it with seller financing, then offer the mortgage notes for sale. Equity First Funding also has a listing portal where you can browse their current inventory.
Noteworthy Investments
Noteworthy Investments is a buyer and seller of mortgage notes based in Cape Canaveral, Florida. They offer performing and non-performing mortgage notes for sale. Noteworthy provides a free note analysis for mortgage note sellers, offering in-house valuations before selling.
NoteOlogy
NoteOlogy is a full-service mortgage note investing company. They buy and sell performing and non-performing mortgage notes, as well as physical real estate. If you're interested in buying mortgage notes from NoteOlogy, you can register as a note buyer on their website to receive new note listings via email.
The Note Factory
The Note Factory creates a continuous stream of high-yielding notes by buying real estate and selling it with seller financing. They allow investors to buy the mortgage notes they create, offering returns of around 10% annually. The Note Factory is known for its expertise and has a track record of generating impressive investment returns.
Edward J Adams Note Brokerage
Edward J Adams is a long-standing family business that buys and brokers various types of debt instruments, including mortgages, deeds of trust, and land contracts. While they don't list mortgage notes for sale online, you can contact them for current inventory information.
Evergreen Note
Based in Seattle, WA, Evergreen Note works with homeowners, builders, developers, and real estate professionals to create seller-financed notes for sale to investors. They buy and rehab their own real estate to create seller-financed notes and also buy and sell performing and non-performing notes.
PPR Note Co
PPR Note Co, founded by renowned note investor Dave Van Horn, offers multiple note investment fund offerings for accredited investors. These funds provide fixed returns and offer regular updates on the portfolio of notes. PPR Note Co is a trusted name in the industry.
Private Lending Investments
If you're looking for passive monthly income without the need for extensive knowledge and effort, private lending is an excellent option. Private money lending allows real estate investors to buy and rehab properties quickly. It offers advantages over buying pre-existing mortgage notes since you can set your own lending terms and assess borrowers and collateral upfront. Here are a couple of options for private lending:
Garnaco Private Lending Portal
Garnaco's private lending program allows investors to purchase individual whole mortgage notes secured against property owned and managed by the Garnaco Group. Investors can earn annual returns of between 8% and 12% while contributing to the affordable housing program.
Connected Investors
Connected Investors is a platform that connects private lenders with real estate investors in need of funding. They have a vast list of lenders looking to fund different types of real estate deals. If you're a private lender, this platform can help you connect with potential borrowers.
Buying Mortgage Notes From Banks
If you're looking for the most financially rewarding way to buy notes, consider buying non-performing notes directly from banks. While this method requires a significant investment of time, effort, and resources, it offers substantial returns. Building relationships with banks and understanding their non-performing notes is crucial to success. Tools like BankProspector can help identify banks with non-performing notes and provide contact information for decision-makers.
How to Get Started
Now that you're equipped with knowledge about various sources for buying mortgage notes, it's time to define your goals and objectives. Determine how much time, effort, and resources you're willing to commit to note investing. If you want passive income, consider buying performing notes or exploring private lending options. If you're up for a challenge, start building relationships with banks and note investors to buy non-performing loans. Remember, relationships are essential in this industry.
Buying mortgage notes can be a profitable investment strategy. Use this guide to explore different sources and find the right approach for your investment goals. Good luck on your mortgage note buying journey!
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