News

The Eggerss Report Featuring The Note Factory

Why Should You Invest in Real Estate Notes With The Note Factory? THE EGGERSS REPORT FEATURES THE NOTE FACTORY The Note Factory was recently featured on The Eggerss Report with Karl Eggerss. Karl Eggerss is the principal and CEO of Eggerss Capital Management. On the show, Karl discusses with Mike Arch, principal of The Note Factory, the potential for real estate notes to become a valuable addition to your investment portfolio. Karl is a widely known financial analyst and adviser. He has been featured many popular financial and investment broadcasts including Fox Business and CNBC. Click below to listen to...
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Note Investing 101

We are often asked for the most basic explanation of note investing from those that are completely new to the concept. Our response commonly uses the analogy of the investor (you) to the bank. If you think of yourself as being the bank or the lender, and you are lending to an individual then often times this will bring clarity to the mystical concepts that new investors often times have trouble conceptualizing. Effectively, you are receiving payments plus interest on a mortgage that your payee (the person paying you the mortgage) owes to you. Lets break it down even further....
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Alleviating Complexity of Investing

Lets face it, the last thing you want is to be spammed with different investment opportunities all of which become exponentially more complex as you delve further and further into the options. Many of us have sifted, or are still sifting through, the gimmicks, sales pitches, and bait and switch tactics that the real estate investment community has been polluted with. Many of you out there, including myself have been burned by these "get rich quick" schemes in the search for a solid and profitable investment that will genuinely produce great returns. We have gone to great lengths at the...
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Mortgage Note Investing Vs. Acquiring Rental Properties

A "Great Recipe" Vs. A "Good Recipe" We want to illustrate the value of a “great” recipe compared to a “good” recipe by showing you some compounded returns over time. Acquiring rental properties has been the investment vehicle of choice for many real estate investors trying to build passive income. We agree that rentals can be a pretty “good” recipe but definitely not as good as building a portfolio of real estate notes. Not only are the yields better, but with real estate notes you don’t have to deal with renters, repairs, property taxes, insurance and vacancy rates. Most experienced...
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How Can I Create Passive Income With Real Estate Notes?

WHAT IS SELLER FINANCING? Before we discuss the process involved in creating a real estate note, it is important to understand the concept of seller financing. Seller financing is when the seller of a property takes the place of a traditional mortgage company or bank and lends money directly to the buyer. The buyer and seller sign a document defining the terms of repayment including the agreed upon interest rate, number of years to repay the loan and the monthly payment. This document is called a Real Estate Note. WHAT IS A REAL ESTATE NOTE? A real estate note is...
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Why are experienced investors buying real estate mortgage notes

Why do we see so many seasoned investors transition to note investing? We have found that towards the end of many real estate investors careers, after they have spent their time, money and energy pursuing the more “conventional” methods of real estate investing (renting properties, wholesaling, and flipping) the natural course of evolution brings them to real estate note investing. We have found this to be true for not only real estate investors but also investors that have been involved with mutual funds, bonds, ETF’s, CD’s and investment vehicles associated with the stock market. Is this coincidence or should we...
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5 Tips to Fireproof Yourself

It’s not popular to admit, but a forest fire is nature’s method of clearing overpopulated areas. Being in real estate for decades has provided us a good vantage point to know that an economic fire is coming. We don’t know when or how or in what area the conflagration will spark, but we know that we are overdue. If we’ve learned anything, it’s that the downturn will be surprising to most, devastating to many and refreshing to a few. We want everyone to succeed and we hope to provide the support to help make that a reality. We know, however, that...
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5 Reasons We’ve Stopped Flipping

Ask a stranger what they think of when they hear someone say “I make money in real estate,” and chances are good that they’ll mention shows like “Flip This House.” The strategy is to buy a house cheap, fix it up, and sell it for a profit. Indeed, we have made great profits on some of our flips. After hundreds of flips, however, we have found it to be the worst, most risky strategy in residential investing today. In fact, we have launched an entire business around helping real estate investors avoid the pitfalls of flipping; “flopping” would be more...
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WAIT Before You Rent That Property Ask Yourself These 5 Questions

Renting a property you own to a stranger is kind of like adopting a teenager. They are messy, rude and eat up your savings. Obviously, you love them, but still would it kill them to take their car off our lawn? Renting properties has been the investment vehicle of choice for some investors and has worked well for many.  We have found with rentals that the results are mediocre at best. Personally, I’m not after average results; otherwise I never would have quit my average job. Average is easy. We are after extraordinary results, and seller financing has given us those...
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Non Performing Note Investing Is the risk worth the reward

Have you been tempted by the high rates of return and potential large profit margins offered by investing in non-performing notes? The abundance of non-performing notes available along with the potential high yields are often the primary factors which leads many investors to graze in the pasture of non-performing notes. The economy, while getting better, is still trudging along and recent bank regulations require lenders to relieve themselves from certain non-performing assets. The lure? You can get a non-performing note at a deep, deep discount and banks and note-holders are more than happy to dump them and get them off...
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