Almost anyone can become a note investor, but that doesn’t mean being a note investor is right for everyone. There are certain people who do better in this business than others and we’ve narrowed it down the top five things you need to be successful in this business.
The first thing you need to become a successful note investor is a quality education. Investing in mortgage notes is a learned skill just like any other profession. Before you can become a heart surgeon, marketing executive, or teacher, you have to go to school to learn how to be successful in those professions. But there is no formal schooling for become a real estate investor.
There are formal training programs out there, including our online note investing education, Note Investing Academy, but it can be hard to determine which program will actually teach you what you need to know to be successful in this business.
When reviewing programs to purchase, research the educators making sure they have a strong reputation in the business, and review the content of the program to make sure it seems thorough and robust.
Finally, consider the cost for your education. Some programs will cost tens of thousands of dollars, while others are more affordable around $5,000 or less. While this may seem like a lot, paying someone to show you how to do things the right way from the start is a lot cheaper than losing thousands to tens of thousands of dollars on a deal gone wrong.
The best education doesn’t matter if you don’t have the time to dedicate to learning. If there is one thing you need beyond all others, it’s time. It doesn’t matter if you have experience investing in real estate or are brand new, becoming a note investor takes time. Like with any business venture, you will dedicate more time in the beginning as you learn, get your business up and running, and begin purchasing your first investments. Once you have your note investing business established, you will still need to dedicate time, but it won’t be as time intensive as when you first got started.
You only get out of your note business as much as you put into it. Before you decide to become a note investor, assess the available time you have and determine how much of that time you are willing or able to dedicate to it.
Attention to detail
While this isn’t a requirement to being a successful note investor, it sure helps. Note investing is a very technical business that requires analytical skills, organization, and a strong attention to detail. Are you the type of person that hates being on a computer all day, cringes if they have to review or input data in spreadsheet, or despise organizing or reading through dozens of documents? If so, this may not be the right business for you. If you hate doing something you won’t do it, so think about who you are as a person and take into consideration what type of tasks or jobs bring you joy before deciding to become a note investor.
Note investing is primarily an online business. Most communication is done by email or phone, but data is gathered, shared, and analyzed on your computer. You don’t have to be a computer whiz to invest in notes, but you do need basic skills like understanding how to conduct basic online research, create and interact on social media platforms like LinkedIn, use spreadsheets like Google Spreadsheets or Excel, among other computer skills. If you aren’t confident in your computer abilities, improve them. There are dozens of resources online, most of which are free that will help you improve your computer skills.
One of the last things we find most successful note investors is to have grit, which is defined by Angel Duckworth, an expert on grit as “passion and sustained persistence applied toward long-term achievement, with no particular concern for rewards or recognition along the way.” Investing is a long game. People who are unable to see long-term goals or have the endurance to follow through will struggle. You have to the courage to raise capital, speak with sellers, make bids, and take calculated risk showing up each day and doing the work that is required to help your business grow. You must be creative and flexible with your outcomes, adjusting your exit strategies or methodology as things change. Being an entreprenuer and investor is not always easy. We’ve found the people who last and truly make it are the ones who have grit.
Want to learn more about note investing?
Even as the economy heads into rough waters, note investors are positioned to do very well during these uncertain economic times.
If you're interested in learning how we are able to invest and profit by creating, buying, and selling mortgage notes regardless of the economic climate, visit our website, where we show you how you can become a note investor through our online note investing education program, Note Investing Academy.