{"id":6651,"date":"2024-10-18T10:06:41","date_gmt":"2024-10-18T10:06:41","guid":{"rendered":"https:\/\/sterlinghomesltd.com\/?p=6651"},"modified":"2024-10-18T10:06:41","modified_gmt":"2024-10-18T10:06:41","slug":"real-estate-notes-investment","status":"publish","type":"post","link":"https:\/\/sterlinghomesltd.com\/real-estate-notes-investment\/","title":{"rendered":"Real Estate Notes Investment."},"content":{"rendered":"

In the real estate sector, there are special instruments used for investment opportunities, of which one is \u2018 Real Estate Note\u2019. It focuses on the revenue generated from a property rather than having a physical owner on the property. This revenue generated is referred to as a debt instrument on the property which is remitted to the investors.\u00a0<\/span><\/p>\n

In this blog post, we talked about how to get started on real estate notes investment<\/a>, its risks and benefits to investors.<\/span><\/p>\n

What Are Real Estate Notes?<\/span><\/h5>\n

Real estate notes, <\/span><\/a>also referred to as \u2018Trust Notes\u2019, are debt incurred on properties by real estate companies or lenders to be paid to investors.\u00a0<\/span>For instance, when you invest in \u2018Sterling Real Estate Note<\/a>\u2019, it pays a return of 10% in six (6) months. If you invest NGN 5,000,000 which is the minimum required, it means you will earn NGN 500,000. When you invest in real estate notes, you will generate passive income without the traditional method of holding the property.<\/span><\/p>\n

Types of Real Estate Notes<\/span><\/h6>\n

Performing Real Estate Notes<\/strong>: With this notes investment, the investors receive their payment without default.<\/span><\/p>\n

Non-Performing Real Estate Notes<\/strong>: In this notes investment, there is default in payment of the revenue incurred.<\/span><\/p>\n

Secured Real Estate Notes<\/strong>: These notes investment are referred to as secured because investors have the right to withdraw their funds.<\/span><\/p>\n

Unsecured Real Estate Notes<\/strong>: The risk attached to these notes investment are very high because of the risk attached.<\/span><\/p>\n

Benefits of Real Estate Note Investment.<\/span><\/h5>\n

Higher Potential Returns:<\/b> Real estate notes offer more returns compared to traditional real estate investments, especially with non-performing notes.<\/span><\/p>\n

Passive Income:<\/b> The interest on real estate notes are generated regularly either monthly or yearly, based on the investment agreement.\u00a0<\/span><\/p>\n

Diversification:<\/b> Investors can diversify their investment portfolio risk through real estate note investment.<\/span><\/p>\n

Potential for Appreciation:<\/b> Real estate notes allow investors to control larger amounts of property value with a smaller investment fund.<\/span><\/p>\n

Low investment risk<\/b>: All rights associated with the property belong to the investor, which means they can foreclose the investment at any time.<\/span><\/p>\n

Risks Associated With Real Estate Note Investment<\/b><\/h5>\n