ISO Mortgage Note REIT’s

[Orlando Paz]

It's been a few years since I last visited Bigger Pockets. I was never able to see my dreams of getting into real estate investing, let alone find a place of my own. Although not as "sexy" as what many actual real estate investors do, I've recently decided to start looking into REIT's. It's probably laughable compared to what others with deep pockets can invest in, but I have to be realistic with what I can afford to start with. I've already opened a Fundrise account and I am also looking into "Groundfloor Financial". They are a crowdfunding company that makes it possible for anyone to invest in mortgage notes without the snobby accreditation requirements. Right now I am still looking into it and I am also open to any other recommendations. Any input is greatly appreciated.

[Bob E.]

@Orlando Paz  Be careful with mortgage notes right now.  Seller financed notes are basically sub prime and we are on the threshold of a recession.  In 12-18 months you are more likely to be able to buy non performing notes at a discount.

Mortgage REITS exist but look closely at their leverage.  A lot f them borrow short term and then originate 30 year notes.  As long as you can roll over the debt a cheap rate you are fine.  With the Feds raising rates some of them will have problems rolling over debt.

Many libraries will have a copy of Value Line Investment Survey.  They should have a section in there on publicly traded REITS.  Most pay a decent dividend and are liquid.  They used to cover a few Mortgage REITS too.

God luck and God Bless.