I put this book together to help potential investors make informed decisions. You’ll find straightforward, information that you need to know before taking your first step as a note investor, a quick and easy read.
The COVID pandemic has been brutal for many segments of the economy, but especially hard for landlords. Property owners were forced to delay rent collection, and evictions were prohibited. Landlords had to continue paying taxes and insurance, keep the properties in good condition, and pay the bank without receiving monthly rent checks.
Many landlords were growing weary of the three “T’s” – tenants, toilets, and turnover even before the pandemic hit.
Based on the pre-pandemic statistics provided by iProperty Management, 10% of renters were already delinquent on their rents, and one in eight landlords were having to change the lightbulbs for their tenants. On average, it costs approximately $10,000 to evict a tenant – if you can do it at all. Many cities, like New York, San Francisco, Washington DC, Oakland, and Portland are rent controlled, adding to the list of hassles for landlords. Several more cities are considering rent controls and some states (like Oregon) are working on measures to control rents in their entire state. It’s no wonder that many landlords are getting burned out.
Fortunately, there’s an alternative…
Investing in mortgage notes offers landlords (and other investors) a way to participate in the benefits of owning real estate without the headaches. Investing in notes is a “Best Kept Open Secret” for real estate investors. Most people aren’t aware that they can invest in notes, even though over $25BB of private mortgages are originated in the US every year.