habakkuk enterprises

'We Buy Trust Deed Notes!'

The Real Estate Note Industry?  

The private real estate note business has been around informally for many years as long as there have been mortgages.  The industry has developed and matured tremendously over the years, and with the onset of technology such as the internet, it has changed and adapted to a very new environment.  Today, private mortgages are considered a viable alternative to institutional mortgages for many North Americans, and a secondary trading market for this secured paper is developing.

It is estimated that there are over $90 Billion in existing seller financed Real Estate Notes and Trust Deeds in the United States, secured on over 1.8 million properties.  As well, the market grows each year by a further $2.8 Billion.  Clearly, the use of seller financing when selling/buying properties is common and growing.  This growth has facilitated the liquidity required to trade the notes once created through an evolving and expanding part of the US economy. The Discounted Cash Flow Business.

Sophisticated investors value the security and potential returns from investing in Real Estate Notes.  Many prefer owning real estate paper to actual real estate because of the headaches that surround renting property, maintenance and upkeep etc.  Returns on investments in bonds and the stock market have been variable at best over the last few years, and many have lost confidence in the market?s ability to filter through the fraudulent and greedy actions of some of the country?s most powerful corporate leaders.  Sophisticated investors are looking for better choices and Real Estate Notes is the answer for more and more people each year.  Individual investors are learning what financial institutions and insurance companies have known for years?that secured real estate paper can be a safe and secure alternative investment.

The industry is often referred to as the discounted cash flow business because the investor will only pay a portion of the balance due on the note at any given time.  The discount plus the interest collected provides the return to the investor, while the upfront cash removes the risk from the seller of an uncertain payment stream collected over several years.

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