All Forum Posts by: Joshua Sanchez

Thank you so much for all the info. This has taught me alot and gave me some other ideas that I had not thought about.

Josh

I was reading in blog post http://www.biggerpockets.com/renewsblog/2013/06/25/buy-a-house-with-2000-or-less/

In it it talked about using private money. I know people that have lots of money but do not have the time to invest or know what to invest in. I want to know how it works and what I mean is if i approach an investor and tell them that I invest in RE and am looking for funding and I will pay them x % return on their money. Would I be issuing them a promissory only or am i supposed to put them on the deed or what im lost on this. Also would it be for 1 year or 5 year or what is the standard length for these kinds of deals?

Thank you
Josh

All good points and makes me think that just buying single family homes is the better way for me at this point in my life since i do not have that much money but am able to save up for 20% down payments one small homes. I figure i can just buy anywhere from 1-2 homes a year. Then later if i decide to sell them i can take a note on it or i can sell and move up in property type like apartments or commercial.
Thanks everyone for the responses.

Thanks David
I guess what I forgot to include was that in the past I have always used property management only if it cashed flowed and that how I would enjoy a passive investment. I was just trying to see how that compared to note buying. It seems like most big investors hold on to the actual property and not just the note. I have always liked knowing that my property is being paid off and my income grows and grows.

Thanks Marc for the reply. Now what if I have limited funds? Like i am able to put 20% down on an investment property but would I be able to use leverage like that when purchasing a note or would I have to buy all cash up front?

thanks

Hello I am fairly new to this site and I tried to find a post on this but was not able to. My question is which is better in the longer term, buying real estate to buy and hold and cash flow or to invest in mortgage note? My goal is to have as much cash flow as I can to be able to build lots of wealth. I do not like wheeling and dealing like flipping. I much rather do my homework and find good properties that rent out good and enjoy the income.

But I have read about note buying and they make it sound like its way better than being a landlord but I just do not see what the difference is since either way you still have to make sure you pick the right property. Also (and not sure if this is possible with note investing) but in buying real estate I can leverage myself and only need 20% in most cases.

I would appreciate you guys feedback. Thank you in advance.

Josh