Episode Details
Back to Episodes
The Cashflow Power of Mortgage Note Investing
Description
Multifamily investments have been disrupted in the last two years, but the only answer to that is continuing diversification.
What if you could be assured of a real estate investment option that yields consistent cashflow, no matter what?
And what if you could have flexibility to leverage even with fluctuating interest rates?
In this information-packed episode of the Hidden Money Podcast, Adam Roberts and Emily Cortright of A&E Investments, tell us about Mortgage Note investing. Adam is a Multifamily education Coach/Mentor and Emily teaches a variety of wealth-building classes at Keller Williams offices. Their combined revelations from their pivotal diversification into Mortgage Notes isn’t to be missed if you’re wanting to diversify successfully.
Disclaimer: The content of this podcast is not legal advice and is meant for educational purposes only.
In this episode, we discuss
- The reason for Adam Roberts’ and Emily Cortright’s diversification into note investing, shifting from multifamily real estate due to market challenges.
- What note investing entails, including buying and selling mortgage notes, and the types of notes available (performing vs. non-performing).
- How note investors mitigate risks through due diligence, including property appraisal, investment-to-value ratios, and location analysis.
- Detailed steps involved in underwriting notes, such as assessing the property value, location, title report, and borrower’s payment history.
- The different strategies if a borrower stops paying, including loan modification, cash for keys, and foreclosure.
- How third-party loan servicers manage the administrative tasks, escrow adjustments, and collections, making the investment more passive.
- The importance of diversifying investment portfolios between multifamily properties and notes to ensure stable cash flow.
- The impact of location on note investment, focusing on lender-friendly states with efficient foreclosure processes.
- State-specific tax considerations and nexus issues for note investors, and the role of third-party servicers in managing payments.
- Methods to liquidate notes if needed, including public trading platforms like Paperstac and selling partial payments to regain capital while retaining note ownership.
- ‘The Banker's Code’ by George Antone as an influential read for understanding note investing.
To Learn More
You can reach out to Adam and Emily on their website - Home | A&E Investments (aeinvest.net)
If you want to book a one-on-one Passive Income Call, you can find an availability calendar on their Contact page - Contact Us | A&E Investments (aeinvest.net)
For more education on wealth-building education and events, you can visit their Podcast and Events page - Podcast and Events | A&E Investments (aeinvest.net)
To access bonus tax content, go to https://www.hiddenmoney.com/bonus
To start using the tax code as a tool to grow your wealth, schedule a call with Pine & Co. CPAs: Consultation (pinecocpas.com)
Social Media Links
Instagram: https://www.instagram.com/hiddenmoney.podcast/
Facebook: https://www.facebook.com/hiddenmoney.podcast