Where To FInd Real Estate Note Investments Part 2 | Episode 210 - a podcast by Bryan Ellis - SelfDirected.org

Real estate-secured notes are an exceptional asset class that offers the simplicity, safety and strength that wise investors seek.  And without a doubt, one of the best sources for getting the best note deals is from other individual investors.  But who, exactly… and how?  I’m glad you asked!  Today I share with you 3 key sources for acquiring privately held real estate notes.  I’m Bryan Ellis.  This is episode #210.

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Hello SDI Nation, welcome to the podcast of record for savvy self-directed investors like you, where each day we help you to FIND, UNDERSTAND and PROFIT from exceptional investments.  Be sure to check out the show notes for today’s episode #210 by visiting SDIRadio.com/210.

One such resource you might enjoy is an article I recently wrote for TheStreet.com which addresses the weakness in the luxury end of one of the biggest real estate markets in the world:  New York City.  For those of you who are inclined towards focusing your investment capital on major money centers like New York City, you’ll see some really solid reasons why it’s worthwhile to expand your horizons a bit.  Again, the link to that article is on today’s show notes page at SDIRadio.com/210.

And with regard to analyzing specific markets, I have great news, my friends.  Beginning this coming week, you’ll get to enjoy “Market Monday”… one episode per week – on Monday, not surprisingly, hehehe – that highlights a particular real estate market in the U.S., and why it is – or maybe IS NOT – a suitable investment target for YOU, the self-directed investor!  This isn’t a rah-rah session… and the analysis is just as likely to motivate you to “stay out” as to “jump in”.  The point will be both to educate you about current conditions in a particular market, along with showing you some fundamental factors that are supporting – or weighing on – particular real estate markets.  So look for the first edition of SDI’s Market Monday episode this coming Monday, and if there are any particular markets you’d like for us to analyze, please drop a note to me at feedback@sdiradio.com!

So let’s return to note investing, and what is likely the single best source for acquiring them for you as an individual investor.  That source, generally, is private investors… other individuals like me and you who – for one reason or another – find themselves in possession of real estate notes.  Let’s break this group down into 3 categories:

Category #1:  These are the other individual investors who presently own real estate notes.  They may have acquired these notes because they are in the business of selling their own properties through seller financing which inherently creates a real estate note, or maybe they acquired the note in some other way.  These people are frequently easy to find because you’ll see signs or other advertisements that offer “owner financing” or “seller financing”.  Just search CraigsList in your target market area to find some of them.  This verbiage in an ad is a dead giveaway that the person selling the property is creating a note.  At that point, the relevant questions become:  Do they want to sell the note, and if so, is it a good investment?  On the first point – do they want to sell – the only way to know is to ask!  On the second point – is it a good investment – we’ll defer that question just a bit, so stick with me.

Category #2 of private note sources:  Create them yourself!  Look, this isn’t a good option for everybody, and I don’t want to suggest that it is.  But for those of you who are already landlords, the choice of monetizing your property through seller financing isn’t substantially different than monetizing it through a lease.  The big differences are that you’re getting a down payment that you keep, rather than a security deposit you must return, and that you don’t have to think about maintenance or management or landlord legal liability ever again.  So for those of you who are ALREADY actively involved as landlords – such as those of you who are active, day-to-day real estate investors – this could be a great option for you. 

And finally, there’s Category #3:  Me.  That’s right, yours truly.  My business produces a lot of very high-quality real estate notes, and we’re fond of partnering with investors on these notes.  I don’t actually sell a lot of notes outright because they are, to me, a highly desirable asset.  Instead, what I do is look for investors who can benefit from the type of cash flow that notes can produce, and basically allow them to co-invest with me so that they are entitled to receive the payments from these notes for a long period of time… and in a manner that’s incredibly low-risk for their capital.  I won’t delve into the details right now, but if you’re looking for a way to generate between 6 and 12% on your money in a really simple way by co-investing with me, just drop me a note to feedback@sdiradio.com.  Those deals are usually fairly low-dollar, requiring on average LESS than $50,000 per note, so it’s not a huge capital commitment.

So there you have it, folks:  3 great options for buying privately-owned real estate notes:  You can seek out people who are selling houses with seller financing; You can sell properties you already own with seller financing, and create a note that way; or you can just reach out to me and I’ll handle the whole shebang!

Hey, before I let you go to resume all of the important things you’ll be doing today, I’d just like to say thank you.  As long-time listeners know, I had to take a hiatus from this show for a couple of months due to some big things going on in business and life that demanded my singular focus.  My absence tugged at me every single day, because this podcast is, frankly, my favorite thing to do each day.  And so I was quite concerned that my audience may have dissipated by the time I returned.  And that’s why I’d like to say thank you… based on being back for just about a week, I’d say that SDI Nation is alive and well… and may have even GROWN during my absence!  You folks are amazing and your attentiveness is so humbling.  I know that YOU… the person who is listening right now in your car or on your phone or wherever you are… YOU are the reason for the success of Self Directed Investor Radio, and I thank you.

That’s all for today, folks.  Remember that you can catch this show on video too… We take video of my recording session each day and add some other nice content to it as well, so if you’re listening to the sound of my voice right now, but maybe you’re a more visual person, stop by SDIRadio.com/YouTube and SUBSCRIBE to the SDI Society Youtube channel so you get updates with each new episode we post.

Have a great Wednesday, folks, and remember:  Invest wisely today, and live well forever!

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