The best investment I've found!

People make money in real estate all the time, it's just a fact of life. In fact I can't remember the last time I heard of any one losing money in real estate.

There are many ways that you can approach the real estate market, but the best way that I've found is real estate notes. You're propably thinking what are real estate notes? A real estate note is a contract between the buyer and seller of a property that allows the buyer to make payments and the seller to collect interest, like a bank mortgage except without the bank. This most commonly happens when a seller has difficulty obtaining a loan from a bank, or meeting the down payment or purchase price, and the seller still wants to sell the property.

While some people purchase properties below the market price and then sell them with a real estate note for a higher price, this is still not the best way to approach real estate notes, even though you can often obtain a higher purchase price.

Some wise investers are able to purchase these notes from note holders at discount price. Most of the time, the original seller never wanted the note in the first place. So they are willing to discount. It is not uncommon to make 20% or more with this kind of investment.

Lets make our selfs an example: our seller wants $150,000 for his property, and our buyer can only get a loan for $50,000 that leavs $100,000 they agree to create a note for the remaining $100,000 with an interest rate of 10% and they close the deal. Our seller gets a call from an investor, the investor says he will purchase the note for $75,000 the seller likes the idea of having cash instead of reciving payments and says ok. The deal closes.

If you take the $15,000 profit times 100 then divide it by the $75,000 investment you can see that our buyer made 20% in this purchase. This is an over simplified example of course, and provides that the note is fresh and no payments have been made yet. But you can get the idea.
There are also people who find buyers and sellers of real estate notes and "match" them. This means that they collect a profit from puting a deal together which in fact is what has made the note industry grow so much since '94.

A man named Russ Dalbey who had been investing in real estate notes himself and was teaching other people to do the same got a call from one of his studants, he said that he already had a seller and he knew he could make money if only he could find a buyer. Russ said that he knew of a guy who may be interested. He put them together and the deal closed.

Now you see why I say real estate notes are the best investment I know about. If the payor defaults on the payments, the note holder can foreclose, and he gets to keep all the payments. This makes it a very safe investment whith high profit potential.