Four Reasons to Invest In Notes
What a Note is and why it is a better option than being a landlord
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1. Be The Bank
Through Note investing. No headaches of being a landlord having trouble tenants, toilets or trash. From your passive investments collect automatic payments directly into your Self Directed Retirement Account.
You are the Bank!
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2. Buy Right
Entry to any investment is key! Purchase correctly with the proper Due Diligence your mortgage Note or deed of trust investment will provide a safe, high-yield return secured by 1st position liens recorded against residential or commercial real estate.
Invest Wisely
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3. Give Back
By being the Bank, we are in a unique position to help the home-owners/borrowers by doing a loan modification. Turning a non-performing Notes into a performing Note, reestablishing Cashflow.
This fits our business model, Helping home owners stay in their homes!
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4. Build a Legacy
Approaching retirement (or not), your investments in a Self-Directed IRA will compound building wealth. Your money is in the money business always working!
If you don't spend it all, you can leave a Legacy, generational wealth to those you love!
Diana Bonacasa is the founder of Secure Note Investing, a note investing company located in Long Island, New York.
With her background in social work, notary public services, and real estate industry experience, she has built a successful business by establishing relationships with investors and providing them with the knowledge and resources necessary to excel in the note business.
Her focus on networking and identifying the best steps to help her investors grow their portfolios has helped her to establish a strong reputation in the industry.
Yo hablo español, llámame si quieres
conversar sobre notas hipotecarias.
1-631-898-5765
Investing in Notes with your IRA
Rental property income is neither stable nor consistent. There is a passive real estate investment without all the headaches and risks, and that is mortgage loan investments.
Note investments involves buying secured home mortgage loans that banks already underwritten and approved. Mortgage loan investors count on monthly loan income for profits and since they do not originate the mortage loans they don’t need to evaluate debt to income ratios, collect required disclosures, instead they simply purchase loans through what is called the secondary market.
Mortgage loans are secured loans in which a borrower's property is pledged as collateral. A lien is recorded against the property to secure the lender’s interest, and if the borrower ever defaults, the lender has the right to foreclose the collateral and sell the property in order to satisfy the debt.
Investors can buy loans secured by multifamily properties, commercial properties, vacation homes, and single-family primary residences.
When you purchase a residential mortgage loan as an investment, you are simply buying a debt obligation for a set number of payments from an existing loan that has already been originated, usually by a licensed financial institution.
While the borrower is the rightful owner of the property and is allowed all the rights and responsibilities of ownership, that ownership is subject to the lender’s lien on the property, which must be paid in full before the borrower completely owns the home.
Over time, equity grows as the value continues to rise and the amount of debt is paid back to the lender.
Part of the beauty of mortgage loan investing is that the lender has no other responsibilities for the collateral property, that is entirely the owners’ responsibility.
Note investing is a simple business. Money was lent, the borrower needs to pay it back in monthly installments, the investor buys the lender’s rights to the repayment. It is a great opportunity for IRA retirement accounts to grow.
Self-directed IRAs give you a perfect place to amplify the power of your investing capital because investing within an IRA allows an investor to enjoy tax-deferred or tax-free growth, making it even easier to double your money.
It is important to understand that lending money with non-retirement dollars interest income is subject to ordinary income tax rates. In a self-directed IRA you are in a tax-exempt environment and you will be able to create wealth and grow the account either tax deferred or in case of a Roth IRA tax free.
I hope you have gained some insight on how mortgage loans can create an amazing synergy for any investment portfolio, without the volatility of the markets or the headaches of real estate ownership.
If you are interested in investing in Notes with your self-directed IRA feel free to contact me to discuss several investment options.
Discuss with Diana MD@securenoteinvesting.com
1-631-898-5765
Frequently Asked Questions
Listed below are answers to some of the more common questions that people ask about Note Investing.
What is a Note ?
A Note is a promise to pay. It is a written IOU from the borrower to the lender. This important document contains details of the terms and the agreements between the borrower & lender. There are 2 broad categories of Notes...Collateralized and Non-Collateralized. A collateralized Note provides security to the lender because the borrower pledges to give the lender something of value (house, car, 1st born child, etc.) if the borrower fails to repay the debt.
Are Notes a secure investment?
Note Investing is a very safe and predictable way to grow your wealth, here's why. A Note is a promise to pay. It is a written IOU from the borrower to the lender.
This important document contains details of the terms and the agreements between the borrower & lender.
There are 2 broad categories of Notes...Collateralized and Non-Collateralized.
A collateralized Note provides security to the lender because the borrower pledges to give the lender something of value (house, car, 1st born child, etc.) if the borrower fails to repay the debt.
Why do banks sell the Mortgage?
Banks sell Mortgages for a variety of reasons. Quite often they sell the Mortgage when the borrower has stopped making payments. These non-performing mortgages are packaged up in "bundles" and the entire bundle is sold at a deep discount in order to raise cash.
Banks also sell performing Mortgages to raise cash. These are typically sold after the bank has collected interest for a number of years and simply wants to do something else with their capital. Performing Notes are sometimes sold at slightly discounted prices to other Banks, Mortgage Lenders and Investment Firms seeking cash flow.
How do I get the money to buy a Note?
Many note buyers get money through equity lines of credit on properties, cash savings and retirement accounts/self directed IRA’s, HSA’s and CESA. We have also seen people form small partnerships with friends and relatives to buy Notes.
Is more profit found in Notes then owning the property? Why is this?
We have found that the Return on Investment is just as strong and sometimes stronger than those generated by property. This is especially true when you consider the value of the personal time invested into each investment.
Notes tend to be "hands-off" while property requires a great deal of your time.
What do you mean when you say I am like the bank?
As a Note holder, you are literally the "mortgage company" to the property owner. We suggest that you use one of the professional "Servicing" companies that we recommend to interact with the property owner.
However, you own the Note and you have the option to "self service" the Note and deal with the property owner directly.
Can I sell a Note?
Owning a Note is much like owning any other investment asset (rental house, stock, etc).
When you decide to exit your investment, simply call us and we will sell you Note for you. Selling a Note can be a faster transaction than selling real estate. You could have your sale proceeds as fast as 7 days but in most cases a few weeks is more realistic.
I am interested. What is the next step?
If you want to get started, simply make an appointment with Diana Bonacasa. We will help you develop an action plan based on your specific situation. It's free and there is no obligation to invest.
Note Investing Training Resources
Diana Bonacasa is part of a growing community of Note investors with
many free and paid resources for your Note investing success!
Learn about Note Investing with a 10-part video series created by my mentors, Desi Arnaz and Patrick Franz.
Also download The Note Investing Pocket Guide by Patrick Franz.
These two free resources will help you decide if Note Investing is a great investment tool for you.
Desi Arnaz and Patrick Franz run a Note Investor Mastermind Group on Saturday mornings.
The session includes a presentation on an investment topic, a special guest presentation, and a question and answer session.
Participants include investors, realtors, accountants, lawyers, and other specialists who help you have success in Note Investing. Highly Recommended!