Mortgage Note Investments In Albuquerque – What To Look For And What To Avoid

Mortgage note/trust deed

Mortgage note/trust deed investments in Albuquerque can be a fantastic way to earn solid returns and diversify.

In fact, mortgage note/trust deed investments are one of the methods that the wealthy use to make much bigger returns on their investments than anything you can get on the open market.

In a nutshell, a mortgage note/trust deed investment is a private loan that’s secured by real estate.

Most are long-term, generally 10, 20 to 30 years, and normally at a high interest rate – 7-9% is typical, even when banks are lending at 3-6%.

Surprisingly, there’s a lot of competition from borrowers who are willing to pay these kinds of rates to lenders – and an increasing number of investors who are interested in funding them.

Why would investors take deals that banks would pass on?

There are lots of reasons, so let’s start with the basics.

Banks and lenders fall under a lot of regulations that private money lenders don’t necessarily have to follow, especially since they’re not federally insured.

Local mortgage note/trust deed investment are actually more like old-school investing. Mortgage note/trust deed investment are built on trust – just like back in the day, when it was common for deals to be sealed with handshakes and there weren’t so many lawsuits.

Mortgage note/trust deeds aren’t just based on credit scores and ratios.

For these deals, insider knowledge, relationships and potential value matters a lot more than the score assigned by a computer.

But like other high-return investments, there’s a lot of risk involved if you don’t know what you’re doing.

The investors who make a lot of money on mortgage note/trust deed investment work with highly reliable brokers, attorneys and experts who help them evaluate the full potential of the loan – and assess the risks involved.

If you’re interested in capturing solid returns from the local Albuquerque area mortgage note/trust deed investment marketplace, we may be able to help you.

We get requests from people who are looking to borrow money secured by real property who don’t qualify for traditional financing.

As a general rule, most investors want a high degree of security that the borrower stands to make good ROI with the funds he or she borrows. If the borrower’s plan is too risky or shows signs of probable failure, it’s wise to pass on the investment.

Sometimes, we may partner with qualified investors to secure deals, and a mortgage note/trust deed is one tool at our disposal.

If you’re looking to invest in Albuquerque real estate – not just in mortgage note/trust deeds – give us a call anytime at 505.404.1131.

We’re happy to talk with you about our services and discuss how we can help you make money in real estate.

About The Author

Robb Krautbauer

Owner and CEO of Mountatin View Investors, Inc. Robb has executed over 75 commercial real estate deals since 2011. In this time, he has raised over $3mm, with a transaction volume of over $40mm.

Comment via Facebook