Do you know how to make money selling and buying mortgage notes in California? Buying mortgage notes in California is a great way to invest in real estate. BGK Investments, the top mortgage brokers in California, share how you can earn money buying mortgage notes in California on non-performing loans.

Modification
Buying mortgage notes in California opens several options you can make money in. Since it is a non-performing mortgage, you will be buying mortgage notes in California at a lower price than what the property is worth. If the existing homeowners want to stay, but cannot afford the payments and are fine with a loan worth the house’s present value at a mutually decided interest, you lower their payments to what they homeowners can afford. Once they make three months’ worth of payments, they can refinance under HAFA at an even lower rate. In that case, you get your note paid off at present value which is more than what you paid while buying it and make a profit. To get great deals at buying mortgage notes in California, call BGK Investments in California, the leading real estate investments firm.

Long term hold on a non-performing note
Another way to make money on buying mortgage notes in California is to make them a performing note with a modification as described above and then hold the note. The homeowners will make their payments to you as long as they own the home. A performing note is much more valuable and you can sell it for a higher amount and make money. To understand further how to make money buying mortgage notes in California, seek the best investments firm, BGK Investments.

Short sale on a non-performing note
Upon buying mortgage notes in California, if the borrower wants out of the house, a short sale is the best option. Due to the low cost of the note, you would make a nice profit even after paying all the costs.

To get the best offers for buying mortgage notes in California, call mortgage experts, BGK Investments at 888-335-3139.

Investing in real estate can be one of the biggest decisions of your life. Finding the right property and having the money to buy it are the first things that come to your mind when you think of buying a property. But there are several other very important things that need to be investigated before you put your money into a piece of real estate. The top real estate investigation service in California, Ben Keisari led BGK Investments, explain what all you need to know before you buy a property.

PROPERTY USE

If you want to invest in a piece of real estate, you should do speak to the zoning officer of the local municipality. That would tell you if the way you want to use the property is allowed under the zoning ordinance. Find out if you need any permits or approvals; whether there are any existing problems or violations; and if there are any proposed developments in the area that may affect your property.  Real estate investigation service by Ben Keisari in California will help you unearth all such information so that there are no unpleasant surprises later.

PROPERTY RESTRICTIONS

Determine whether there are any restrictions upon the property such as easements through a title search at the county recorder of deeds. The best real estate investigation service in California, BGK Investments, can help you with this.

HOMEOWNERS ASSOCIATION

If your property is a part of a condo or homeowners association, you should understand all of the conditions, rules, and regulations of the association to know any restrictions the association places upon the property.

PROPERTY SURVEY

You should get the property surveyed so that you know everything there is to know about it and your investment stays safe. Ask for the best real estate investigation service in California, Ben Keisari led BGK Investments, at 888-335-3139 NOW.

Before you make up your mind to buy an investment property, you should clearly understand your lender’s loan terms. What if you are assuming a down payment of 20%, only to find later that the lender is asking for 30% down payment? Knowing your lender’s terms well in advance saves you from such unpleasant surprises. The best mortgage brokers in California, BGK Investments, can help you understand the technical jargon that lenders often use.

To clearly understand the terms of the expected loan and the lender’s criteria and guidelines will enable you to assess your potential investment clearly, make sure you talk to the best mortgage brokers in California, such as BGK Investments, before you start making offers on real estate.

Which loan products are available?

Lenders could provide one or more of these loans: conventional, Fannie Mae/Freddie Mac loans, FHA/HUD loans, bridge loans, and/or construction loans. The more options the best mortgage brokers in California can provide the better.

What are the basic terms for a typical loan?

Ask about the loan-to-value ratio that is going to be offered. Find out the expected rate of interest, term, and amortization. You also need to know whether the loan will be secured by collateral or your lender would ask for a personal guarantee.

What are the costs associated with the loan?

Understand the costs of third party reports, such as the appraisal, structural and environmental reports, and legal fees. There are often prepayment penalties if you decide to refinance or sell before the term of the loan. Go to the best mortgage brokers in California, BGK Investments, to get the best possible options.

Are there any net worth requirements?

Typically the lender will ask you to show liquidity of 10% of the loan and a net worth equal to the loan balance. There could be a reserve or minimum account balance pre-requisite. Some lenders may ask you to deposit a few months’ months of interest payments into an escrow account.

What are stable and distressed assets?

Generally assets, with less than 80% occupancy, may be considered distressed. The loan terms for both stable and distressed could be different. The best mortgage brokers in California, BGK Investments, specialize in mortgages for distressed assets.

How long does it take for the loan to reach you?

Normally loans take 45-60 days to close. Make sure you know the timeframe for this lender.

To understand how lenders treat each mortgage and work out the best possible solution for you, seek advice from the best mortgage brokers in California, BGK Investments.