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Showing posts with label notes for sale. Show all posts
Showing posts with label notes for sale. Show all posts

Thursday, November 5, 2015

4 Ways to Make Non-Performing Notes Work for YOU!

Note investing is a little known investment strategy that allows you to basically be the bank. As a note investor, you purchase debts from financial institutions and then collect interest on the debt until it is repaid. Some types of notes you can purchase are credit card notes, store financing debts, auto loans, and even home mortgages. Once you own the note, you collect the interest. Depending on what type of note you purchase, note investing is a very safe and passive investing strategy. You buy a note and sit back and make money.

However, not all notes are created equal. Credit card notes and store debts are unsecured, meaning there is not collateral to fall back on in the case of default. They usually earn you higher interest but come with a much higher risk. Mortgage notes are usually fairly safe because the physical property can be used as collateral in the event of default.

If you are interested in purchasing mortgage notes, you can make your money work double or even triple by purchasing non-performing notes. Non-performing notes are pretty much exactly what they sound like, debts that are currently in default. While this may sound like a crazy idea, it has many benefits. Here are a few benefits of purchasing non-performing notes that you NEED to consider.

1. Non-performing notes can maximize your profits while minimizing your initial investment. A $200,000 note will cost you significantly less because it is currently in default, meaning the borrower is not repaying their debt.

2. Once you own the note, you can set about the process of rehabbing it. Just like you would fix up a house, you can fix up a note. Depending on your end goals, there are a few ways to go about this. If the note is for a property you would like to own as an investment, you can foreclose and take possession of the property. Since you got the note at a discount this means you get the property for a significant discount as well.

3. If owning the property is not your end goal, you can re-negotiate the terms of the non-performing note with the borrower. This basically involves changing the terms of the note so that the borrower is able to start making payments and get out of default on the note.

4. Once the non-performing note is performing again, you can either hold onto it and earn interest, or you can sell it as a performing note for a considerable profit.

While non-performing notes are a great way to make money, it is important to remember that there is still risk involved, especially if this is your first time investing in notes. The laws and regulations surrounding note investing are complex so don't try to go it alone. Call the professionals at Level 4 Funding today to get started purchasing non-performing notes.



Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC
Arizona Tel:  (623) 582-4444 

Texas Tel:     (512) 516-1177 
dennis@level4funding.com
www.Level4Funding.com
NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027


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How to Make Money: 3 tips for Investing in Notes


Whether you know it or not, you are already investing in notes, just probably on the wrong side of it. Note investing is the process of buying a debt that is owed and earning interest on that debt until the principal is repaid. If you interested in investing in notes, it is important that you learn all the facts so you know what you are getting into. Here are 3 quick tips to make investing in notes easier and more successful.


1. Do your research and decide which type of note you want to buy. If you are investing in notes, you can purchase credit card notes, auto loan notes, and mortgage notes among a few others. Credit card notes have the potential to earn high interest rates (just think of how much you end up paying if you carry a balance) but are also higher risk because the debt is unsecured. With an auto or home loan, the note is secured by collateral. Many experts prefer mortgage notes when investing in notes because they are a relatively safe options with the potential to make high profits over time.

2. Consider buying non-performing notes. A non-performing note is a note that is in default, meaning the borrower is not making payments on the debt. Non-performing notes can often be purchased at discounted rates and can be rehabbed. Just like a fix and flip property, you can fix and flip a note by either re-negotiating the terms with the borrower, or foreclosing and selling the collateral. This is only an option if the note is a secured debt. Once the note is current again, you can sell the note and make a nice profit.

3. Always work with a financial professional. Investing in notes can be complicated and there are many different laws, regulations, loop holes, and other details that the average person doesn't know about. Use a broker or financial professional to help make sure your investment is secure.

If investing in notes sounds like a great investment strategy, that's because it is. It can be an effective way to earn high interest each month without having to worry about the ups and downs of the stock market. If you are ready to start investing in notes, call us at Level 4 Funding today! We specialize in alternative investment strategies and can help you every step of the way!



Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC
Arizona Tel:  (623) 582-4444 

Texas Tel:     (512) 516-1177 
dennis@level4funding.com
www.Level4Funding.com
NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027


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Saturday, October 10, 2015

How to Earn More and Work Less with Note Investing


Whether you know it or not, you are probably already involved in note investing but on the wrong side of it. Investing in notes is the process of buying debt in the form of credit cards, student loans, mortgages, or car loans. But instead of making payments, you collect payments from the borrower, which include a higher than average interest rate.

Many investors think that note investing sounds too good to be true, or may even think it is a scam. This could not be further from the truth. Note investing is simply the process of purchasing debts that borrowers owe. Once you purchase the debt, you earn interest each month until the debt is paid in full by the borrower. This interest can range anywhere from 3% on a mortgage note to well over 15% on a debt like a credit card. The interest rate is not subject to changing market conditions so you earn the same rate over the life of the loan, which can be anywhere from a few months to 30 years, depending on the terms of your investment.

While there are many types of note investing like credit cards or car loans, there are some specific advantages that come with investing in real estate notes. Investing in notes that are tied to the real estate market is very similar to trust deed investing. Basically, you purchase a mortgage debt from a bank. The bank benefits because there is less of a risk of loss in the case of default because it has capital from you. You benefit because you can now start earning the interest that is paid by the borrower each month. While this may be a relatively low rate, it is usually a high payment due to the amount of money involved in the transaction. You can earn hundreds every month compared to a credit card note which may have a higher interest rate but generally a lower balance so the monthly interest payment is less.

Higher monthly payments makes real estate note investing one popular way to start investingin notes is to invest in real estate notes. In this situation you basically buy a promissory note that is part of a mortgage. You hold the note and earn interest. You receive payments each month until the mortgage is paid in full and then you get back your initial investment. You don’t have to work for your payments, you sit back and let the cash flow in.

Risks and Benefits of Non-Performing Notes


Real estate note investing also has an extra opportunity for smart investors to earn high returns, non-performing notes. A non-performing note is exactly what it sounds like, a debt that is currently not being paid. When a mortgage is not being paid, the bank has two options, foreclose on the property or sell the note to an investor. While several years ago foreclosure was the first choice, many banks are now opting to sell non-performing notes.  By selling the note rather than going through the expensive and sometimes drawn out process of foreclosing, a bank stays out of the chain of title, doesn’t become liable for the property’s environmental conditions and doesn’t have to worry about ownership issues. The sale of non-performing notes is a cheaper alternative to foreclosure.

Once you own a non-performing note, you basically fix up the note the same way you would fix up a property. You can renegotiate the terms of the note with the borrower if you goal is long term monthly payments and interest earning. Or, if you would prefer to own the actual property that you hold the note on, you can foreclose on it and take possession. From here you can rent it out, fix and flip it, or hold onto it until it appraises for the amount you want to sell it for. Regardless of which avenue you take, you will make a profit on your non-performing note.

The greatest risk with non-performing notes is that you will lose money during foreclosure. You can help make this less likely by knowing all the laws related to foreclosure in the state where you own the note. Make sure to take into account any extra expenses the foreclosure process may entail.

Call us today to get started with note investing and non-performing notes!



At Level 4 Funding, we specialize in alternative investment strategies like investing in notes. We can help you through the process to help you start working less and earning more!



Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC
Arizona Tel:  (623) 582-4444 

Texas Tel:     (512) 516-1177 
dennis@level4funding.com
www.Level4Funding.com
NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027


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Investing in Non-Performing Notes: A Win-Win for Borrowers and Investors



Investing in notes is a relatively safe investment strategy that pays consistently high interest rates with low risks. While note investing can yield high returns, investing in non-performing notes can have even bigger payouts. However, there are more risks involved in non-performing notes so it is important for investors to be aware of all risks and benefits.

Have you ever heard of investing in notes? Probably not, but you are most likely already doing it. If you have a credit card, car payment, student loan, or mortgage, you are in the note investing business. But, you are on the wrong side of it. You are paying interest on a note to a bank or note holder instead of earning high interest rates by being the bank. When you purchase a note you become the bank and have many of the advantages like high interest rates and security that the bank has. This includes the ability to renegotiate the terms of the note in some cases, earn higher than average interest rates, and have a consistent interest income that is not dependent on market conditions. If this sounds like it is too good to be true, it is not. Note investing is a little known but very legitimate type of investment that money savvy investors and banks take advantage of regularly.

One popular type of note is a real estate note. Real estate notes are generally safe investments because they are backed by actual physical collateral, the property that they represent the title to. Real estate note investing also has an extra opportunity for smart investors to earn high returns, non-performing notes. A non-performing note is exactly what it sounds like, a debt that is currently not being paid. When a mortgage is not being paid, the bank has two options, foreclose on the property or sell the note to an investor. While several years ago foreclosure was the first choice, many banks are now opting to sell non-performing notes.  By selling the note rather than going through the expensive and sometimes drawn out process of foreclosing, a bank stays out of the chain of title, doesn’t become liable for the property’s environmental conditions and doesn’t have to worry about ownership issues. The sale of non-performing notes is a cheaper alternative to foreclosure.

Benefits for Investors and Borrowers

As an investor, you can purchase the non-performing note from the bank for a discounted price. Once the note is purchased, the investor goes about rehabbing the note to turn it into a performing note that can greatly increase in price. As the investor you have a couple options when it comes to rehabbing the non-performing note. You can work with the borrower to negotiate different loan terms. This is a good option if you don’t want to own the actual property but you want to earn monthly payments, including interest. It can also work out well for the borrower who can avoid foreclosure and further negative marks on his/her credit.

A second option to rehab a non-performing note is to foreclose on the property. This is a good option if you want to sell the property for a profit or if you are a developer looking for cheap land and buildings for a new project. This is only a good option if you want to own the actual physical property at a discounted price. Many experts advise that this can be a great strategy to get a multi-family or commercial property for much less than the appraised value.

Danger, Buyer Beware!

Like any investment, non-performing notes have some risks associated with the investment. You can help yourself risk less by taking a few critical steps to protect your investment:

·         Know the foreclosure laws in the state where you purchase the property. Some states require you to go to court and go through the process of judicial foreclosure with takes longer and can cost more money. If you are getting a great deal it may still be worth it, but it is important to know about all the issues upfront.

·         Get as much information about the physical asset as possible. Know the location, market value, condition, and any other pertinent details about the property.

·         If possible, get a home inspection and appraisal done prior to purchasing the note, especially if you want to own the actual property. This will help protect your money.

·         Find the right lender who knows the ins and outs of the non-performing note business. Not just any bank will do, make sure your financial professional understand note investing and has done it before.





Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC
Arizona Tel:  (623) 582-4444 

Texas Tel:     (512) 516-1177 
dennis@level4funding.com
www.Level4Funding.com
NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027


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Friday, October 9, 2015

How to Be Successful and Make Money with Note Investing


Whether you know it or not, you are probably already involved in note investing but on the wrong side of it. Investing in notes is the process of buying debt in the form of credit cards, student loans, mortgages, or car loans. But instead of making payments, you collect payments from the borrower, which include a higher than average interest rate.

Many investors think that note investing sounds too good to be true, or may even think it is a scam. This could not be further from the truth. Note investing is simply the process of purchasing debts that borrowers owe. Once you purchase the debt, you earn interest each month until the debt is paid in full by the borrower. This interest can range anywhere from 3% on a mortgage note to well over 15% on a debt like a credit card. The interest rate is not subject to changing market conditions so you earn the same rate over the life of the loan, which can be anywhere from a few months to 30 years, depending on the terms of your investment.

While there are many types of note investing like credit cards or car loans, there are some specific advantages that come with investing in real estate notes. Investing in notes that are tied to the real estate market is very similar to trust deed investing. Basically, you purchase a mortgage debt from a bank. The bank benefits because there is less of a risk of loss in the case of default because it has capital from you. You benefit because you can now start earning the interest that is paid by the borrower each month. While this may be a relatively low rate, it is usually a high payment due to the amount of money involved in the transaction. Even at 3.5%, you can earn hundreds every month compared to a credit card note which may have a higher interest rate but generally a lower balance so the monthly interest payment is less.

Benefits of Real Estate Note Investing


As discussed above, high monthly payments are one key benefit of investing in notes that are related to real estate. In addition to high payments, there are several other benefits that are unique to real estate note investing.

1.       Borrowers are less likely to default completely on their home loan. While foreclosure does happen and is a risk, most borrower are emotionally tied to their home. Even if other debts end up being defaulted on, they are less likely to want to risk losing their home so a mortgage payment will often be a priority, even during times of financial stress.

2.       The note is backed by a real, tangible asset. In the event of default, the property can be foreclosed on and some of your investment can be recouped. This is simply not the case in many other types of note investing. Take credit cards for example, if a borrower defaults, his credit will be impacted but credit cards are unsecured debt, meaning that there are no physical assets that can be used to recoup your funds.

3.       Note investing can be very profitable. Especially if you buy a non-performing note and spend time to rehab it. This means you buy a note that is close to or in default and renegotiate the terms of the loan with the borrower to avoid foreclosure. You then earn interest and the note itself becomes more valuable. In some cases, these notes can be worth nearly 12% interest each month.

4.       Less competition. Investing in notes is a niche investment market. There are only a few private equity firms and hedge firms that use this investment strategy and the pool of individual investors is even smaller. This means no bidding wars and often puts you in a great position to negotiate price and terms.

5.       Easy, passive investing. You can have a financial company manage your note for you for a flat fee that is usually quite small. In addition, if the note is performing there is almost not managing necessary. You get to sit back and earn money every single month.

Call Level 4 Funding to learn more about investing in notes today!



Note investing is a great strategy to build your investment portfolio and has the potential to help you earn big bucks. Call us today to get started!

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC
Arizona Tel:  (623) 582-4444 

Texas Tel:     (512) 516-1177 
dennis@level4funding.com
www.Level4Funding.com
NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027


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How to "Be the Bank" by Investing in Notes



 Note investing is a little know investment strategy that can provide high returns and low risk. You can get started investing in notes by learning the basics of the investment strategy and finding a private lender who specializes in alternative investment strategies.

Have you ever heard of investing in notes? Probably not, but you are most likely already doing it. If you have a credit card, car payment, student loan, or mortgage, you are in the note investing business. But, you are on the wrong side of it. You are paying interest on a note to a bank or note holder instead of earning high interest rates by being the bank. When you purchase a note you become the bank and have many of the advantages like high interest rates and security that the bank has. This includes the ability to renegotiate the terms of the note in some cases, earn higher than average interest rates, and have a consistent interest income that is not dependent on market conditions. If this sounds like it is too good to be true, it is not. Note investing is a little known but very legitimate type of investment that money savvy investors and banks take advantage of regularly.

If you want to get started in note investing, it is important that you learn the basics about the types of notes you can purchase and what your role as the investor is. Note investing has a number of advantages, but perhaps the most appealing is that it creates passive cash flow. This means that you don’t have to do anything to earn the money beyond your initial time commitment to obtain the investment. The capital you invest then begins to work for you, earning you interest each month without requiring time or additional money.

One popular way to start investing in notes is to invest in real estate notes. In this situation you basically buy a promissory note that is part of a mortgage. You hold the note and earn interest. You receive payments each month until the mortgage is paid in full and then you get back your initial investment. You don’t have to work for your payments, you sit back and let the cash flow in.

Benefits of Investing in Notes


Passive cash flow, as mentioned above, is probably the most appealing benefit to most investors who engage in note investing. It is truly a way to let you money work for you, rather than you working for your money which is often the case. In addition, investing in notes is a relatively safe investment because the note you invest in has a fixed interest rate. If you sign on for a 5% note, the rate is always 5%. It is exempt from market fluctuations and you will not lose money if some catastrophe occurs to close the Chinese stock market, or of Wall Street crashes. Your interest is fixed and you can earn high percentages. Think about the interest you pay on your credit card every month. If you own the note, you get paid that instead of paying it to Visa.

Aside from consistent cash flow that you don’t have to work for and high interest rates, note investing is also an easier investment that can be cashed out quickly, if need be. Think about real estate, if you own an investment property you have to maintain it and if you want to sell it, it can take months or even years to find the right buyer. If you own the note on an investment property, you have absolutely no maintenance and a note is easier to sell than a physical piece of property.

Investing in notes is also a versatile investment strategy. You can flip a note like in the case of a non-performing note that is sold as performing, you can rehab a note by working out a loan modification if a borrower is struggling to make payments, or you can even borrow against a note and use it as collateral. Each type of note investing has various advantages that can help you make your money work for you.

Like any investment, there are also risks involved in note investing.


You can help minimize these risks by working with a private lender who specializes in alternative investment strategies. Here at Level 4 Funding we work investors to reap the benefits of note investing while helping to mitigate the risks involved. Call us today to have all your note investing questions answered.



Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC
Arizona Tel:  (623) 582-4444 

Texas Tel:     (512) 516-1177 
dennis@level4funding.com
www.Level4Funding.com
NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027


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