Buy Discount Mortgages For Fun And Profit

     A lot of people that come to Climer School of Real Estate to  get their Florida real estate license are struggling to make a living.  Getting into real estate is an escape from a payday to payday living for them.

     We also have students that are not struggling.  They have money in the bank.  The problem with money in the bank is that the bank does not pay you much interest in 2013. 

     In our pre license real estate class, we hardly ever mention buying owner held mortgages at a discount.  We never mention it because it is not on the Florida real estate exam.   I often have students during breaks and lunch discuss this lucrative investment opportunity. 

     Buying discount mortgages is certainly not risk free.  It is so lucrative that it is worth investigating if you have a few dollars to invest.  People are constantly selling real estate and holding mortgages.  Read my article. http://www.biggerpockets.com/blogs/3840/blog_posts/27179-seven-reasons-a-seller-should-hold-a-mortgage  As long as there is real estate, there will be people holding mortgages.  Often, what seemed like a good idea five years ago does not seem quite as cool five years later.  Many people decide to sell their mortgage at a discount.  If someone were holding a mortgage with a balance of $10,000 with 120 months left at 111.02 per month, and they decided they would rather have some cash.  That 111.02 per month just doesn't seem as exciting as it was five years ago when our hero agreed to hold this mortgage. 

     If you contacted this person or he contacted you and you offered him $7000 cash today.  He accepted that.  He assigned the mortgage to you.  He can buy himself a boat or a motorcycle that he has been yearning for.  You are getting a fourteen per cent return on your investment. 

     This is not complicated.  It is not quite as easy s reading a this article.  Anyone that sells real estate for a living will run across plenty of opportunities to buy mortgages at a discount.  The next time that an opportunity presents itself, go for it. Buy it.  Fourteen per cent is better than one per cent.  Take some time and effort and learn more about buying and trading discount mortgages.  The better you understand real estate, the easier it is to sell real estate.  Knowledge is power.
 
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