Real estate notes are a great armchair investment you can make in the real estate industry. While other real estate niche investments typically require a lot of time and management along with your investment, investing in real estate notes offers is a great strategy for generating passive income.
Just like you can find rental properties for sale through real estate brokers you can also find notes through brokers that sell them. However, the process of finding a reputable broker in the note space is much less transparent than the traditional real estate housing broker industry. So, you’ll want to be sure to do your homework to find the right note broker to work with. In today’s post we’ll cover 4 tips you should follow when working with note brokers to help you find the right notes in the IL and Chicago.
Tip #1. Find A Real Estate Note Broker With Experience
Real estate note investing has some similarities to real estate property investing but also some differences. And the real keys to success for brokers are a solid track record of helping others, and a deep list of great relationships. So talk to your real estate broker and see if they have both. What kind of experience do they have with note investing (and with helping others invest in notes) and what kind of relationships have the developed?
Tip #2. Find A Real Estate Note Broker With Testimonials
Although there are many ways to measure the success of a real estate note broker, one way is through how many testimonials and case studies they have. Do they have a lot of testimonials? Do they have a lot of case studies? (Sometimes they might have one or the other and that’s okay). Ultimately, you’re looking for someone who can show that they’ve helped others.
Tip #3. When Working With A Real Estate Note Broker In IL And Chicago, Ask About Note Availability
Great brokers have access to a lot of notes. They won’t necessarily own those notes themselves but they should access to them. (A broker’s inventory is likely not made of entirely of notes THEY own). You just want to make sure they have a lot of notes available. This gives you the assurance that they can pull the cream of the crop just for you, and that they can find the right notes based on your investing goals.
Tip #4. Work With A Real Estate Note Broker Who Helps With Insight And Guidance
Real estate note brokers aren’t licensed investment representatives, so don’t expect that level of financial advice. However, good real estate note brokers should be able to provide you with some insight and general guidance, perhaps through blog posts or over the phone, that can help you understand how to invest in real estate notes.
A great place to start working with a real estate note broker in IL and Chicago is by reading this blog that you’re reading right now and seeing what information is available and how you can apply it in your investing. But then go deeper by getting in touch with the note broker to see if they have other ideas, insights, or even educational programs that can help you.