Why are real estate notes bought and sold?
Noteholders may choose to sell the note to a real estate investor if they have difficulty receiving regular, timely payments on the note or need cash. They sell the note at a discount because it’s based on future payments using today’s dollars.
The sale of the note provides instant cash. And it removes a noteholder from any further responsibility for collecting payments.
Investors who purchase promissory notes because they offer a versatile, collateral-backed real estate investment, not affected by stock market changes. Since notes sell at a discount, investors earn returns from the difference between the discounted price and the real value of the note, plus regular monthly principal and interest payments. Notes can offer a faster and higher return on investment than stocks and bonds.
At Alvernia, we purchase promissory notes in affordable neighborhoods throughout the U.S. Our intent is to stabilize these neighborhoods and avoid the displacement of deserving residents.
We offer a simple, practical way to invest in real estate, based on best practices from top investors.
With Alvernia as your guide, you avoid the “trial and error” approach and the need to spend on specialized real estate education, so you can free up more capital to invest.
Alvernia serves as your guide to real estate investing, bringing you expertise, practical experience and street smarts.