- New Book by Edward I. Altman and Edith Hotchkiss titled "Corporate Financial Distress and Bankruptcy: Predict and Avoid Bankruptcy, Analyze and Invest in Distressed Debt"
- New book on investing in Pre-foreclosure properties…
- The European Central Bank looks at Mortgage indebtedness and household financial distress globally. A working paper series published in Feb 2010.
- Is the Fed taking us in the wrong direction?
- Foreclosures, REO’s, Bank Note Purchase, are these the investment opportunities for you?
Understanding Real Estate Notes - What are they and how do investors use them?
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Real Estate Notes - What They Are and How to Use Them
July 5, 2010 | by admin
Real estate notes, also known as real estate receivables, are legally-binding documents used to assign buyer rights and record details of real estate transactions. These notes are created when property or land is sold and can be used as collateral for other investment purchases or sold for a lump sum of cash.
In essence, real estate notes document the promise of the Buyer to repay the Seller. They are frequently used along with mortgages to aide in the financing of real property, including carry-back financing. In this type of transaction, the seller finances either or a portion or the entire amount of the loan. Typically, the buyer pays the seller a down payment and the remaining balance is paid in installments.
Real estate notes are commonly used when an individual purchases stocks within a property. In this type of transaction a group of investors will partner with others to purchase a property and equally share in ownership. Each investor purchases a specific amount of stocks. The combined funds are placed into a real estate investment trust. REIT’s are companies that own significant amounts of land and operate profit-producing properties.