Justin Bogard Explains 13 Things You May Not Have Known About Note Investing
078: Justin Bogard is one of the leading experts in the realm of real estate note investing.(Show Notes: https://retipster.com/78)Justin is the president of BrightPath Notes, where he actively buys, sells, and creates real estate notes nationwide.A note investor is someone who invests in the loan against a piece of real estate.For example, say a real estate investor buys a property for $40,000 and sells it for $100,000, but they don’t get paid all the cash immediately at closing, they sell it with owner financing. In other words, the seller becomes the bank, and they hold a note with the buyer. The note stipulates that the buyer will owe them the remaining balance of the $100,000 sale price, and lays out the terms of how quickly the money will be paid back and how much interest will be owed, among other things.If they wanted to, this real estate investor could potentially work with someone like Justin by taking this note for $100,000 and selling it to a note investor for say $75,000 (so, not the full amount of the balance owed, but a discounted portion of it).The benefit for the real estate investor is that, even though they wouldn’t be getting the full loan balance, they would make the bulk of their money back immediately (rather than having to wait years to get it), and the note investor would receive all the equity in the deal plus the remaining principal and interest for the remainder of the term for the loan (since they bought the note, it's not owed to them). It can be a great solution for both parties when the real estate investor wants their liquidity now and the note investor wants the semi-passive cash flow without doing all the work to find and work the deal.