If you’re thinking about diversifying your real estate investing portfolio, and perhaps looking beyond the traditional investing methods of single family property rehabbing or rentals, you might be looking at investing in mortgage notes. If you are interested buying and selling, read these 4 tips for working with a real estate note broker in Chicago, Illinois.
Tip #1. Find A Real Estate Note Broker With Experience
Private mortgage note investing has some similarities with traditional real estate investing but also some differences. And the real keys to success for brokers are a solid track record of helping others achieve their pricing expectations, 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 professional 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 with a track record who can show that they’ve helped others.
Tip #3. When Working With A Real Estate Note Broker In Chicago, Illinois Ask About Note Availability
Great brokers have access to a lot of notes. They won’t necessarily own those notes themselves but they should direct access to them via the seller. (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 financial planners, 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 private mortgage notes.
A great place to start working with a real estate note broker in Chicago, Illinois or your area of the country is by reading this blog that you’re reading right now, seeing what information is available and how you can apply it in your investing strategy. 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 make the right choices.