Frequently Asked Questions

How big is the current Real Estate Note Investment industry?

In 2016, over $116 Billion Dollars in notes changed hands and were purchased by Note Investors. That amount is expected to increase moderately for 2017.

Are Real Estate Notes a risky investment?

Each note purchased is secured with an asset which is the actual real estate property in question. The business plan has tested provisions for all possible contingencies. The core of the plan includes (11) eleven industry accepted options, all of which are designed to return the maximum possible ROI.

Can I purchase Real Estate Notes directly from lenders?

Probably not and here’s why. The majority of Lenders are large financial institutions that require the establishment of formal business relationships with companies that will be fully compliant with all existing rules and regulations, while meeting their strict purchasing criteria as well.

How do I invest in Notes?

There are several options available, the first being the most common: Joint Venture Agreement (JVA) – You and our company would formally Sign JVA documents that state the specific terms of our agreement; Amount Invested, Length of Investment Term, Repayment Schedule, etc.  We would then do our own due diligence to purchase the right note(s).

How can I better utilize my existing IRA or 401(k) to invest in Real Estate Notes?

We have an existing relationship with Advanta IRA,  who is a leader in the Self Directed IRA and Self Directed 401-K Plan industry. Converting your existing investments to Self Directed Funds will allow you to invest in Real Estate Notes and maximize your ROI.

What is the minimum investment amount?

$25,000

Do you work with accredited and non-accredited investors?

YES..we have ongoing investment opportunities for both.

How can we get started?

All that is necessary is just a short telephone call at your convenience. Please Contact Us today to get the process started!

Why Would I Want to Sell My Real Estate Note?

When you convert part or all of your real estate note into cash, you gain several advantages in addition to immediate cash:

1) You don’t have to worry about the payments you receive each month slipping away on life’s little expenses.

2) You receive a substantial sum of cash right now enough to accomplish some major goals.

3) You don’t have to worry about collecting monthly payments or servicing your note; we’ll handle it.

4) You don’t have to worry about whether the taxes and insurance premiums are being paid each year to protect your investment; we’ll handle it.

5) You don’t have to worry about whether your purchaser will continue to make their payments.

How Can I Find Out How Much My Real Estate Note is Worth?

One brief consultation with an TruVest Analyst will answer all your questions, enable us to present clearly several options in writing, and help you decide for yourself whether turning your real estate note into immediate cash or keeping it makes the most sense for you. The choice is yours.

How Soon Do I Get My Money?

Once you accept our cash offer and all papers are in order, you can receive payment in 14-21 business days. We believe in fast, efficient service!

How Much Cash Can I Get?

Each real estate note is carefully reviewed to determine the maximum value of the note. TruVest has many options that will meet your individual needs.

Are There Any Additional Benefits To Me?

Yes. When you consider the impact inflation can have on the value of your note over it’s life, cash in hand today can be expected to be worth a lot more now than years down the road.

If I Convert My Real Estate Note To Cash, Will It Affect The Person(s) Paying Me?

No. All terms and conditions outlined in the original note remain the same. Your purchasers’ simply send their payments to TruVest

What Types Of Property Do You Purchase?

We purchase real estate notes on virtually all types of property: single-family homes, multi-family homes, commercial, recreational, vacant land, and mobile homes with land attached.

Why is there a Discount?

You may be surprised (and even a little disappointed) to discover that investors purchase notes at a discount.

Is that fair?

It most certainly is!  But you may need some convincing, and that’s okay.

If you are reading this, you may have sold a home or other property and now hold a real estate note payable over many years.

Consider for a moment that, instead of carrying back a note, you had sold your property for cash.  No discount, correct?

Think again!

Even with the sale of a perfect house to a perfect buyer with great credit, you would still need to pay a Realtor 6% and other closing costs.

The point is that even in the case of a cash sale, you would put only about 92% of the sales price in your pocket.  That’s an 8% discount!

It shouldn’t be too surprising, then, that there’s usually an even bigger discount for the sale of most privately held notes.  There are many reasons for this.

Usually, property sells on a real estate note for a reason:  the property is tough to sell, the purchaser has rougher credit, or the down payment is 10% or less.

But this does not mean your note has no value.

As you can imagine, every note is different.  On average, a typical real estate note is worth about 83% of the balance due.  Some great notes (from our perspective) sell for discounts that are only about 5%, and other notes, unfortunately, are considered too risky to purchase even at a steep discount.

If you have a good use for the money or if you’d just like to simplify your life, a reasonable discount is worth it.  Stores discount merchandise all the time.  It doesn’t mean you’re desperate for anything or that you made a mistake when you sold your property on a note.  It simply means that now you might value the safety, simplicity, and flexibility of cash-in-hand over monthly payments.

TRENDING

China’s mortgage debt bubble raises spectre of 2007 US crisis

The result has been skyrocketing housing prices in Shenzhen, Beijing and Shanghai, where property prices can match those in Hong Kong or London. To meet the mortgage repayments of about 12,000 yuan a month on the two flats, and other debts to friends, he used the first flat as collateral for a loan about 800,000 yuan and got 200,000 yuan in cash from a short-term consumer loans supposedly for a car. She also borrowed 1.8 million yuan from a bank, with monthly mortgage payments of about 9,600 yuan – 80 per cent of her monthly income – for 30 years. Real household debt would have been the equivalent of at least 60 per cent of China’s GDP at the end of last year, Chen said, warning that the rapid rise in household debt was undermining China’s economic growth prospects. China’s household debt to household disposable income ratio had soared to 90 per cent from less than 35 per cent in 2007, he said. Meanwhile, its household savings to household disposable income ratio had dropped from more than 30 per cent in the early 2000s to about 15 per cent last year. Property buyers in the city spent an average of about 3.7 million yuan on their flat in the first half of last year, with mortgage loans averaging 2.38 million yuan, Lianjia said, resulting in an average loan-to-value ratio of just over 64 per cent. China’s first home buyers are, on average, younger than those elsewhere in the world, with most of those in Shenzhen in their 20s and 30s. On average, they need to pay about 10,600 yuan a month for 30 years for their first flat – or 13,000 yuan for 20 years – based on the current mortgage interest rate of 4.9 per cent. Meanwhile, the average white-collar salary in Shenzhen was 8,315 yuan last year and 8,892 yuan in the first quarter of this year, according to Zhaopin.com, a leading Chinese jobs website.
Real Estate Investing

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