Realty411 Magazine Featuring Missy McCall-Hammonds | Page 51

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 GET CONNECTED about in learning more ed st re te in d se Tho sting in notes an ve in d an ng lli se buying, d sup- d more details an fin ill w s nd fu d bt de Academy.com an te o N G N N at e port onlin ply dial- p.com , or by sim u ro G te o N al n io Nat tline. ing the above ho PAGE 51 • 2014 reWEALTHmag.com