Are you a real estate investor looking to invest in notes (or more notes)? If so, you might be wondering how to avoid going broke buying real estate notes. After all, notes are a simple, fun way to invest in real estate without many of the downside and headaches that other investors experience. Keep reading to find out the answer…
We meet a lot of investors. Some are just dipping their toe into the ocean of note investing – they might have questions or are even skeptical about how it all works. But many investors are the opposite – they love investing in notes and go all-in… sometimes even investing “too much” (for them) in notes.
If you’re a note investor (or you want to be) worried about this happening to you, here’s how to avoid going broke buying real estate notes.
How To Avoid Going Broke Buying Real Estate Notes
#1. Set A Limit Of Money You Can Invest
Maybe you have some money set aside that you can invest. Don’t forget that you have other expenses, too, and you should always be able to cover them. After all, you’re probably investing to take care of your family, so doesn’t it make sense to ensure you take care of your family even before your investments provide a return? Set a hard limit and hold yourself to it. If you’re worried you won’t be able to keep yourself to your limit, get a trusted friend to help you.
#2. Get Cash Flowing Notes Only
Investing in cash-flowing notes is one way to ensure you don’t go broke buying notes. That way, even if you spend a large amount of your investable capital on notes, they’ll put cash back in your pocket, so you will reduce the possibility of going broke because you are generating an income from your notes.
#3. Only Invest A Certain Percentage Of Your Income
If you’ve invested some or all of your existing investable capital and still want to invest in more real estate notes, then set a certain percentage of your income for notes and don’t go over that percentage. If you set aside some money and it’s not enough to buy a note, then keep accumulating the money, paycheck after paycheck, until you’ve saved enough.
Summary
If you have to go broke buying something, it’s probably better to buy investments! However, we would never suggest you go broke buying real estate notes because you likely have other responsibilities. Therefore, follow these 3 strategies to help you avoid going broke when buying real estate notes.
If you want to see what real estate notes are available to invest in, you’ll love our selection. So just reach out to us by phone at 706-873-1213 or by clicking here to fill out the form. We’ll be in touch and ensure you get access to our list of notes to buy.