Different Types of Mortgage Loans on the Basis of Mortgage Note

Mortgage notes are gaining traction because it offers win-win situation for everyone involved with it. These are also popular among investors due to lucrative returns associated with them. These mortgage notes are the determinants of mortgage loans.

Let’s go through different types of mortgage loans, which are based on the mortgage note.

Fixed-rate mortgage (FRM)
Also referred as vanilla wafer mortgage loan, a fixed-rate mortgage is a type of mortgage loan in which the rate of interest on the note does not change through the term of the loan. The borrower pays the fixed monthly payment to ensure that the full payment and interest are covered at the term’s end.

Graduated payment mortgage loan
Popularly known as GPM, it is a type of mortgage in which monthly payments increase gradually over the specified time duration. First-time home buyers prefer these types of loans to avoid heavy monthly payments.

Adjustable-rate mortgage
Also referred as tracker mortgage, it is a mortgage loan in which there is periodical adjustment of interest rate on the note. The loan is generally offered at the base rate of the lender. The borrowers are able to decrease their initial payments through this form of mortgage loan if they are ready to handle the risk-related to interest rate changes.

Balloon payment mortgage
It is a type of mortgage in which a balance is left during maturity, as its full amortization does not take place. This form of mortgage is preferred more in commercial real estate market.

Interest-only loan
It is a form of loan where only the interest on the principal balance is paid by the borrower. There is no change in the principal balance in this form of loan. The borrower usually enters an interest-only mortgage during the completion of the interest-only term.

With mortgage note selling solutions from BGK investments, you will experience complete transparency in the dealings. The company also offers note analysis free of cost to the clients.

Top Cities for Property Investment in the US

Real estate industry in the US is witnessing an exponential growth since a decade and nothing seems to impede the markets. It is majorly because of premium returns that investors get with property investment which not only yields huge profits during inflation but also gives them a convenient option to convert their long term investment into a fixed monthly income source by renting it out. Some of the top cities that are magnetizing investors from all across the globe are San Francisco, Denver, Dallas, Atlanta, Tampa, Seattle, Miami, San Diego and Beverly Hills. Most of these cities are located in California, the most populous state of the US which is also seeing a good economical growth since a few years and has become a central of real estate investors of the world.

While real estate industry makes lucrative investment option for investors, it also makes it a risky affair with increase in crimes and frauds. Criminals tend to use false identity and fake documents to get money from innocent locals: they may work as individual brokers or as a criminal firm and abscond as soon as they acquire a good amount of money. This is where hiring real estate investigation services of pioneers of real estate investment industry can be wise. BGK investments is a top notch loan acquisition firm in the US that is led by connoisseur of distressed property acquisition and real estate investment Mr. Ben Keisari who has more than 15 years of experience and owns a huge clientele all across California. The company offers an array services including property investment and investigation, mortgage note trading, whole loan trading, CMO’s and more.

Know why investors worldwide are magnetized by mortgage notes

Over a past decade, cash flow industry has witnessed significant growth in terms of revenue as well as number of investors all across the globe. Be it real estate or stocks, large investment or small, online investment or an offline one, the industry is broadening from all the aspects and inviting more and more investors worldwide. This is where mortgage note investment has become one of the favorite investment options of potential financiers and bankers and is gaining significant popularity all across the US. One of the major reasons why investors prefer to invest in notes is the scope of bargaining. Unlike real estate or stocks, mortgage notes are bought at a good bargain price and have a scope of good profits too. However, this is a long term investment and involves a certain amount of risk too. Read on to know some premium benefits of investing in non-performing mortgage notes-

  1. Mortgage note buying is like investing in real estate that makes you a property owner while keeping you away from the hassles and expenses of maintenance, repair and bills.
  2. You can play with a note as much as you can play with a house; you can flip or wholesale it, you can turn a non-performing note into an asset, you can refinance the note or sell it to another buyer, and since note is like an asset thus you can borrow a loan against it.
  3. With a mortgage note you have a secured lien and the risk is moderate and can also be measured with help of mortgage brokers.
  4. It is an ideal investment option for retirement; mortgage notes come with a fixed monthly income that provides an easy monthly pension for the retired ones.

Besides the above mentioned benefits mortgage notes can be highly profitable and safe if used with help of a broker. BGK investments is a state-of-the-art investment firm in California that has more than a decade’s existence in the state and owns a big clientele all across the US.

3 Interesting Ways to Sell Mortgage Notes

Mortgage notes are a new craze amongst investors including individuals as well as investment companies. Besides investing in IT, textile and real estates, investors find mortgage notes one of the convenient options for long term investments. These notes are purchased at much lesser price than the amount still owed on the loan. Secondly, debtor is given a second chance to pay all money in smaller installments and in an extended timeline. This eventually recovers all pending amount from the borrower with a certain rate of interest and lets mortgage note buyer earn profit over his investment. Due to a sudden rise in sale and purchase of mortgage notes, global cash flow industry has witnessed an exponential growth over a decade.

BGK investments is a leading real estate investment and loan acquisition firm in California that deals in sale and purchase of real estate, non-performing mortgage notes investments, CMO’s, whole loan trading and mortgage note sales. Mortgage note brokers working at BGK help investors in easy negotiation with the note seller and vice versa. Here are some interesting ways of selling mortgage notes in California-

1. Firstly, approach a mortgage note broker like BGK investments to get easy listing of potential buyers: these companies have links with all kinds of financers including individuals, banks and companies and can get easy access to all of them.
2. Secondly, shortlist and arrange for meetings with potential note buyers or let broker do the needful. In some cases broker does everything from proposals, meetings to closings prohibiting the need of direct meeting of both the parties, which in turn helps saving time and effort.
3. Last but indeed not the least, negotiate as much you can. Selling mortgage note is no easy feat and requires patience: and to reap fruit out of your investment bargain and don’t sell it in hurry.

Know why you should invest in Secondary Markets

Secondary markets are like stock exchanges places where investors buy assets or securities from other investors or individuals rather than from the companies. This allows them to negotiate and get profitable deals than primary markets. One of the most famous and profitable investments in secondary markets is investment in non-performing mortgage notes; these investments help banks or money lenders get a slump sum amount for their non performing mortgage notes and lets them use money for other investments.

When buyer invests in property with limited funds and some amount of loan from bank or the owner itself he needs to present his current property or any other asset as collateral. It helps the lender be rest assured of any loss in future. Since property purchase and sale involves huge investments and money transactions, this calls for legal documentation and proofs at both the end. A document or the promissory note issued against the borrower [that is a written promise to pay all pending payment in installments] is called a mortgage note which is owned by the lender. When a buyer is unable to pay installments as per the schedule and has exceeded his time limit of 90 days, his mortgage note becomes a non-performing note which allows the lender to seize the property and sell it to recover all money.

On the other hand, investors seek opportunities to buy non-performing mortgage notes from the lenders at a lower price than its current principal value and refinance the property for the buyer at revised terms. Investors can allow buyer to pay pending amount in smaller installments and over a period of 10-30 years [as suitable]. Eventually, an investor earns profits over these long term investments. BGK investments, a leading loan acquisition firm in US can help you invest in non-performing notes and offer free analysis too.

Get Easy Mortgage loan with BGK Investments

Mortgage loans are one of the most common forms of loans borrowed by individuals and firms; these include transaction of money where a property or an asset is kept as collateral by the borrower. It helps in getting loans on lower rates of interests and for a longer duration than personal and other loans. An important thing that should not be overlooked is the legal right to the property; even if the borrower has property on his name and he has signed the purchase agreement, he may not have legal or complete right to the property until the loan closing takes place. Closing is not just about paying back complete amount it’s about formally closing the deal under presence of a lawyer or a professional like a broker at the time of closing seller will execute the deed to the property, funds are transferred and disbursed and ownership or power of attorney of the property is handed over to the borrower.

Transactions during and at settlement of loan for mortgage is an easier said than done task; it involves tedious legal procedures and requirements that may get on the nerves of both the parties if not handled by a professional. This is where BGK Investments, a leading loan acquisition firm in California provides an easy solution to the quandary. Brokers, lawyers and financers working in BGK Investments are well-qualified and experienced professionals who deeply analyze each case before quoting to the clients. Be it loan against mortgage, trading of non-performing mortgage notes or settlement of mortgage loans, BGK Investments is the solution to all legal problems. In order to provide easy accessibility and convenient association with BGK, the company offers free note analysis for all new clients so they know the current market situation and get true value for their notes; this helps in understanding the market situation and decide if it’s the right time to sell the note or invest in one.

Know How Investing in Mortgage Notes Can Earn You Millions

Investing in non performing mortgage notes or deeds of trust have turned out to be fruitful for many group and individual investors. Mortgage notes are promissory documents that state that the borrower officially mortgages his property against a loan and promises to pay scheduled monthly payments as per the note. Many banks and financers allow individuals to borrow money against a property they wish to buy or already own. This transaction is also known as ‘Seller Carry Back’. And a mortgage note becomes non-performing wherein the borrower is not paying scheduled monthly installments for more than 90 days and mortgage owner wishes to sell it off at cheaper rate.

This is where various loan acquisition companies grab the opportunity of buying mortgage notes at cheaper rates and earn millions out of them. While many companies have already earned hefty amount of money from non-performing notes, others strive to earn as well as help people to earn from these investment options. BKG Investments is a leading loan acquisition fund in California that has an efficient team of investors and financers who valuate mortgage notes as per the market research and sells them to investors at cheaper rates. The company is led by Mr. Ben Keisari who has more than 15 years of living experience of buying and selling mortgage notes and has worked with top real estate companies of California. He proudly owns BGK investments and assists many top financial institutions like Chase, Old Republic Equity Credit Services, Inc., Bayview Financial, United Mortgage Loan & Investment, Wells Fargo, Bank of America and PNC f.k.a. National City Mortgage. Precisely, BGK offers services in three major segments including secondary market investments, real estate and mortgage notes investments.

5 Ultimate Tips to Invest in Non Performing Note Sale / Purchase

Investing in non-performing note sale / purchase is all the rage these days. But before you take the plunge, there are a few things you should know. The leading mortgage brokers in California, BGK Investments, share the best tips on how to invest in non-performing note sale / purchase.

Are you a seasoned investor or a first time buyer? To begin with, it would be better to go with first lien performing notes on residential properties with good equity. To know which non-performing note sale / purchase deals are good for you; seek help from the top California mortgage brokers, BGK Investments.

Get in touch with the current note holder and find out why s/he is selling the note. Understanding that can provide valuable insight into the non-performing note sale / purchase deal and due diligence.

Talk to the homeowners or the person making the payments each month will reveal the truth about the property. They may be thinking of refinancing or may have stopped making payments for a long time. It is better to know such things so that you know what you are getting into before investing in non-performing note sale / purchase.

Sellers may not give you all the facts, by omission or by design. Verify everything from taxes, insurance, payment history, property value, and terms to name a few. Due diligence may be boring but ensures a healthy investment.

Get advice from competent, experienced mortgage brokers, such as BGK Investments in California before you write the check.

4 Things You Must Look For in a Rental Property Investment

No two real estate investments are similar. With a rental property, you are aiming to make an addition to your long term portfolio. This starts with going for the right investment properties in California, an understanding of the local market and where it may be headed. Experienced real estate investment brokers in California, BGK Investments, here share the 4 most important things you must look for in a rental property purchase.

With a rental property, the market is critical. Most tenants lay emphasis on location more than the amenities offered. Before you purchase your rental investment properties in California, you need to have a look at the market and its potential. Find out about the neighborhood, local school systems, unemployment rates, foreclosures, crime statistics, new housing permits and everything else that may matter to someone who chooses to live there. For example, major corporate area laying employees off is not a good sign for your rental real estate investments.

Before you decide to buy certain investment properties in California, get a grip on the numbers that will directly impact your investment. It begins with your purchase price. You should negotiate hard since the purchase price will directly affect the monthly cash flow. Then you need to know all of the costs – interest, taxes, insurance, utility costs, property management fees, maintenance costs, lawn care, snow removal and much more. And then calculate your projected rental price. It is advisable to keep the estimate conservative. The leading real estate investments brokers in California, BGK Investments, can help with number crunching.

You need to find out about other rental properties, what they offer and how it compares with your property. All things being equal, renters will look at the property they feel the most comfortable in. All of this will affect how much rent you can charge and the return on your real estate investments in California.

You want to own properties that bring you good returns. Is driveway and street parking limited? Is there a major college or university nearby? If you are going to have to deal with a recurring issue, is it worth the return? Before you say yes to any investment properties in California property you need to take a look at the risks with respect to a conservative estimate of returns.

Many investors are riding a near all-time high of rental investment properties California. But before you make your next real estate investments in California, you should keep these four areas in mind.

Selling Mortgage Notes – 3 Things No One Would Tell You

Selling mortgage notes could allow you to buy a bigger house, pay for unexpected medical expenses, pay your kid’s college tuition, or even take a dream vacation, says Ben Keisari, founder of BGK Investments, the leading note experts in California. Many people go for selling mortgage notes for the following reasons –

You need quick cash from your equity to meet urgent or immediate financial needs, such as unforeseen medical expenses. Selling mortgage notes allows you to release equity that can reduce your financial burden. Get funding for your urgent cash requirements from selling mortgage notes hassle free with BGK Investments California.

If the interest rate is low, it may make sense selling mortgage notes. During low interest rates, the value of the equity is stronger. But the interest rate will not remain low forever and then the value of your note will decrease again. So selling mortgage notes makes sense when it would fetch you a higher price, in a low interest rate environment. If you’d prefer to wait and see if interest rates fall even further, you can simply sell a part of the note.

Even if the mortgage note is not doing well, it is possible to sell the note and get a high value for it. BGK Investments can help you in such cases selling mortgage notes in California.

Expert broker firms, such as Ben Keisari led BGK Investments, can give you an estimate of how much cash you can expect to get and then once the true value of the mortgage is ascertained, you can choose to go ahead with the sale. Once you have access to the funds you require, you can use that money in any way you like.