Real estate note investing involves purchasing mortgage notes to make money from
– Interest payments.
– Reselling the purchased notes for a higher price.
If you have ever purchased a property, you might have noticed that sometimes the lending institution you signed at closing differs from the one now holding your mortgage.
Since mortgage notes generate high interest and the interest payments are taxed at the income tax level, a self-directed IRA is the most tax-efficient way to invest.
There are various types of mortgage notes in different categories. The four leading real estate note investing categories include lien position, loan performance, asset class, and type.