Why invest in Real Estate Notes?
In the current market property values are at record highs and acquiring lucrative deals has become a challenge. If you are able to find a great deal in this scarce market you will still need to balance a large amount of risk and work to reap a solid return. When buying notes you are able to invest semi-passively and enjoy a lower risk - higher return option.
Attentive to Market Cycles
At ILS we invest by keeping a close watch on the market cycles. Real estate sales volume and prices fluctuate greatly over time and different asset classes fluctuate at different times as well. We believe that in today's market purchasing notes will provide a higher and more consistent rate of return as home values are at a record high.
We're on Your Team
Investor Loan Source was founded by real estate investors with over 20 years of experience. Our team is comprised of active, experienced and successful investors ready to aid you in furthering your goals. Every note we sell has been processed and vetted by a highly trained professional team allowing you to invest with peace of mind.
Short & Long Term Notes Available
With our Long Term 30 Year Notes: A misconception with long-term notes is the length in
which the note is held by the borrower. Most real estate investors hold properties for 3 to 8 years before deciding to sell. You would also have the opportunity to purchase this note outright and after 5 years have the option for us to purchase the note back at the unpaid principal balance. These are principal and interest notes. The interest rate is determined by the borrower’s credit score at 6.99% to 8.49%. In addition, if the note is set to go to foreclosure we will purchase the note back right before the sale.
On our Short Term Notes (6 months): These notes are written with interest rates between; 9.99% and 13.99% and are interest only notes. We can collaterally transfer these notes (transfers the lien not the note) to you at 9% keeping the spread. If the note is set to go to foreclosure we will agree to purchase the note back right before the sale. Of course, if you do not mind the risk you can still decide to purchase the note outright and keep the interest and the risk.
Continued Note Servicing
A common concern for most real estate investors purchasing notes is the maintenance and legalities that coincide with such an investment. Fortunately, when notes are purchased through Investor Loan Source we will continue to service the note for every client. Our customer service does not end at the sale. Our highly trained and professional staff will collect monthly interest payments from borrowers, verify and ensure the required property insurance is on each home and kept current. In addition to this we will verify the property taxes are paid yearly and in a worst-case scenario, we will file eviction on the property.
Purchasing real estate notes is considered a semi-passive investment strategy. Fix and Flips and Buy and Hold deals are very active deals that require training and experience to yield high rates of return and an investor lacking education and experience can end up with a deal having to foreclose on a property. This active investment strategy also has a higher risk than purchasing notes. When you purchase a note with us we alleviate the stress of vetting the paperwork, networking to find active experienced real estate investors, then vetting the borrower, verifying title, maintaining insurance and property taxes, etc. We relieve our note purchasing clients from the heavy lifting and offer a lower risk, higher return semi-passive investment option. Let us do the heavy lifting for you.
Backed by Texas Real Estate
Real estate has been proven an excellent investment option time and time again. Investing in notes can be used to generate an ongoing semi-passive income and can prove to be a good long-term investment as the value increases exponentially over time. The president of Investor Loan Source, Donald Sutton, began investing in real estate notes as an alternative to the stock market to get a more consistent rate of return on investments for his entire family. The notes we provide our clients are backed by Texas real estate. Texas's real estate market is large, profitable, and expanding. It is expected that future demand for housing in Texas will be strong and continued to grow rapidly. That is why purchasing notes backed with Texas real estate is a wise investment choice.
A Simple & Easy Process - Start to Finish
We have a welcoming, highly-trained staff, dedicated to helping you meet your real estate Investing goals. We will guide you through the note purchasing process and will answer any questions that you may have - whether you are buying your first note or are a seasoned real estate investor adding to your portfolio we will strive to meet all of your investment needs.
Meet our Founders
Donald Sutton has spent over 20 years in hard money and asset-based lending, starting with personal real estate investing in single-family rentals and mobile home parks. After self-directing his IRA, he expanded to the Houston market, lending on single-family rentals and apartments. He began lending as an alternative to the stock market - to get a consistent rate of return on investments for his entire family. His passion is to help people learn about building wealth with their IRA Funds.
Tom Berry is an established, seasoned real estate investor and teacher in the greater Houston Area. He started out in real estate by purchasing properties in 2008. Over the next decade, Tom raised over 18 million dollars for the acquisition of real estate assets. Over 70% of that amount was from self-directed IRA clients. Some of the real estate assets include; single-family, multi-family, single-tenant commercial, office, mobile home park and self-storage facilities. Tom is dedicated to assisting fellow real estate investors to pursue their dreams of financial freedom and building long-term wealth.