What is the Note Business?
So what is a Note? Nothing more that a promise to pay.
In the Note Business people buy houses, usually through a seller financed transaction where the owner of the house sells to the buyer and financed the buyer. The Buyer signs a “note” as his promise to pay to the seller and the Seller owns the note as the Note Holder and collects payments over time.
In the Note Business there is usually a middle person a Note Broker or a Note Flipper or in Real Estate Investor Terms the Note Wholesaler. The Note wholesaler finds people who are the holders of a note who would rather have all their cash now rather than collect payments or deal with non-paying borrowers. The Wholesaler can then enter into an agreement to purchase that note at a discount and then collect the payments or work out the note OR, they turn around and wholesale it on to a more experienced and capitalized note person.
Very similar to wholesaling houses, only rather than bricks and mortar and tenants and toilets, the investor is dealing with paper.
Be sure to note that Eddie Speed will be in Kansas City January. He will be bringing all of NoteSchool’s Stats to share with us the State of the Industry on the 13th at the MAREI Meeting. He will be coming back on Saturday the 24th for an all Day Seminar to discuss Why Real Estate Investor’s Need to Learn the Note Business and to Explain the Basics.