helps homeowners and families stay in their homes.
Notes can still be used as a tool for flipping houses,
but Fuquan says he enjoys the enhanced freedom they
offer for facilitating more time with his family, adding “You
can still spend your weekends browsing at Home Depot,
if that’s really what happiness means to you.”
Why Buy Notes?
Bilal says “There has never been a better opportunity
for creating cash flow, and acquiring these assets at a
discount, while enjoying more passive income and wealth
building.”
The desire to “retire early” is obviously one of the big-
gest drivers behind interest in all types of real estate and
mortgage investments. However, this note investing ed-
ucator says “buying mortgage notes is equally attractive
to currently active hands-on real estate investors as it is
beneficial for busy professionals such as doctors, lawyers
and engineers, seeking superior returns and security than
the stock market can provide.”
Mortgage notes are known for offering high yields,
but with the brick and mortar backing of direct real estate
investment, without any of the hassle that comes with
property management and maintenance.
Getting Started in Note Investing
Prior to founding National Note Group, company
president, Bilal started investing in notes with his own
money (and still does).
He tells our readers that while many individuals are
moving large portions of their capital and portfolios over to
debt investing through mortgage notes, it is entirely possi-
ble to get started with as little as $7k to $8k. However, he
is quick to point out that those able to invest at least $25k
are better off, by being able to benefit from immediate di-
versity across multiple 2 nd mortgage notes. Given the high
rates on these loans, Bilal says earning yields of $600 a
month in cash flow on this modest amount of investment
isn’t uncommon.
Some have perceived venturing into note investing
as complex in the past. However, National Note Group’s
spokesperson tipped us off to NNGNoteAcademy.com,
which was built as an industry first, revolutionary, virtual
note investing resource center and online community. Here
both aspiring and veteran investors can access forms,
documents, top level tips and tools, share information, and
sign up for events like the six week Cash Flow Boot Camp
course, and ongoing voice support. It’s like a “GPS naviga-
tion system for investing in mortgage notes.”
Life Happens + The Bridge
While the media has done an outstanding job of
declaring foreclosure rates as declining across the nation
(even while new defaults are surging by triple digits in
Realty411Guide.com
some zip codes,) National Note Group sees incredible
rewards and sustainability in this sector. We are remind-
ed that defaults will always be present due to a variety of
life factors, and that current perceived dips in foreclosure
activity, and REO sales are actually in large part due to
banks and mortgage lenders selling the paper to avoid the
high costs and hassles of the foreclosure process.
National Note Group acts as the bridge between Wall
Street and Main Street to provide individual investors with
access to attractive note buying and investment opportu-
nities.
Investors can choose to buy individual mortgage notes
through NNG, or become capital partners, and invest in a
pooled fund. This second option provides the security of
an SEC regulated and approved investment, along with
the superior security of being collateralized by the entire
fund’s assets. A unique new feature NNG has just included
offers the ability to draw down from the pool to acquire
individual notes too.
Note Smarts: Navigating NPLs
NNG specializes in institutional note buying, and spe-
cifically in second mortgages.
Targeting higher yield non-performing 2nd mortgage
loans, behind performing first mortgages is among the
strategies that have made National Note Group so suc-
cessful, and has given their investors the best of both
worlds - in yield and performance.
Still, Bilal elaborates that comprehensive due diligence
is performed prior to acquisitions. This includes evaluating
equity status, and individual borrower credit reports. He is
clear that “the goal is not to foreclose,” but instead “when-
ever possible to assist homeowners and their families get
caught up and stay in their homes.” However, he contin-
ues that there are some cases in which borrowers simply
can’t afford their homes. In these situations NNG goes the
extra mile to help them relocate, often including assistance
with moving and move-in expenses for a rental home to
provide a graceful exit and fresh start. For investors Mr.
Bilal highlights that any notes in states which take longer to
foreclosure on are protected by offsetting these timelines
with deeper discounts. v
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PAGE 51 • 2014
reWEALTHmag.com