Income Investing with Emerging Markets and Mortgage Notes
Strategic Income investing is the fastest way to maximize your return using real estate in emerging markets, Mortgage Notes (Cash Flow) fully detailed here.
With the addition of Mortgage Notes and your adept capital management team you can experience a real surge to your funds. How does this work?
Mortgage Notes
Real estate in US and offshore emerging markets can set you cash off at high speed as shown so let’s talk about balancing it with other passive asset classes that are equally secured. Mortgage Notes when added can provide similar security from the property that is used to collateralize it. It has good liquidity potential in that it can be sold for cash relatively quickly within 30 to 45 days with a small discount still giving you relatively high yield because you have purchased it at a good internal rate of return and further possibly increased it with a loan modification (effectively tweaked by your adept active investment management partner). An annual return in the 12-18% range is quite realizable. Another unique attribute of your note is that your returns are sustainable in good and bad markets because the interest rate is generally fixed. Well, if the payer on your Note defaults for any reason, your adept investment management team will commence the established plan to recover and sell your property capturing most of the safe equity margin and turning it into a higher return than planned. The other option is to modify the note terms into a win for the investor and for the note payer with an increase in the investors ROI and payment terms that work for both: It takes a skillful manager of your investment to do this, for more details contact our team today.
For example, you
can modify the note by lowering the monthly payment, increasing the interest
rate and the term of the term and still get a higher yield and yet make the
payments more affordable for the note payer. Collection of your note will be
established through a third party agency (for a very small fee) that will
collect and send your payments to you or your account.
The process for acquiring notes in emerging markets generally involves knowing these markets and your active investment management seeking out notes that could be purchased for cash at a discount to boost your income investing. Many sources are used such as direct marketing to note owners, mortgage and real estate brokers, real estate developers, mortgage banks, private note holders, investors and note buying /selling platforms amongst others. On Mortgage Note Income Investing, an investor calculates what return on investment he is willing to take on the note based on its interest rate, term, monthly payments and the equity left on the collateral. A financial calculation is then made which will result in a discounted price that the investor will pay to achieve the desired return. This will be the offer price. Therefore a note paying 10% interest rate for a known term can earn the investor 15% annually by offering and purchasing the note at a reduced price from the principal balance on the note.
Sometimes the discount might be too severe for the seller of the note to accept for the purchase of the entire note. A way to reach the same result will be to purchase a portion of the payments and return the remaining payments to the seller after receiving the contracted payments. The seller may opt to then resell a number of payments of the balance at a later time. The desired return for both parties may be reached that way. Hybrids of purchase of payments either as a partial of the individual payment and or its number of payments may be established to achieve a win/ win for both parties. The result should be cash flow that results in higher return on investment for the investor than the interest rate on the note itself.
Your adept investment manager may partner with you the investor to source these notes and help you purchase them either for a fee taken out of the closing or sharing in the payments or a hybrid of both. In the event the property needs to be recovered and sold to recover the principal and return, your adept active manager of your note will coordinate the process from beginning to end. Expected return on investment at 15% may turn into 20-25% reasonably when the property is sold and all costs accounted for; the key is for your note to be secured at least 30% or below the emerging market value. Get started with your mortgage note income investing today and get cash flow, contact our adept team today.
How to Invest Secured > Real Estate Investing > Income Investing
