Private Mortgage Note Investing with Abby Shemesh

Tara Mastroeni
Published: June 26, 2016 | Updated: October 03, 2022

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Buying or selling mortgage notes can be a difficult path to navigate for the uninitiated. Regardless of whether you’re a seller or a buyer, you must be completely confident in your decision before signing anything.

Abby Shemesh, founder of Amerinote Xchange, sat down with real estate investor, entrepreneur, and host of the EPIC Real Estate Investing podcast Matt Theriault to discuss the ins and outs of private mortgage note investing. Here’s a brief overview on what turned out to be a fascinating and informative episode of EPIC Real Estate Investing.

Introducing Amerinote Xchange

Abby Shemesh starts by explaining what exactly it is that Amerinote Xchange does. In short, the company purchases mortgage notes directly from sellers in all 50 states. Although Amerinote Xchange doesn’t advertise it heavily, the company does sometimes work on the other side of private mortgage note investing, selling real estate notes as well as offering referrals and brokering deals.

Why People Sell Mortgage Notes

Abby mentions a few examples such as buying new property, opening a business, or putting a child through college, but there are countless reasons why a person might want or need to sell a mortgage note. Essentially, a mortgage note can be compared to the lottery or a government bond in that the owner can collect low payments over a long course of time, or receive a discounted amount in one lump sum. A private mortgage note investing firm is the missing link that allows the note holder to collect a large amount of money immediately.

Amerinote Xchange’s Lead Acquisition Strategy

Unlike Matt Theriault who often relies on postcards and letters to find potential sellers, Abby Shemesh gains the majority of his leads through digital means, primarily through organic search results. While postcards may be effective for buying physical property, it’s not ideal for mortgage note investing due to long turnaround times and a substantial amount of competition.

Because finding sellers is difficult into the saturated private mortgage note investing market, Abby takes a unique approach to lead acquisition. One fascinating tip Abby offers is to take advantage of the frequent use of misspelled keywords as part of his web advertising strategy.

Often, people search for keywords or phrases such as “distressed home buyer,” not realizing they misspelled a word. Rather than going in the front door, Abby recommends using a misspelled word generator to target all of the possible misspellings when planning an SEO strategy. Targeting those who misspell search phrases is cheaper and more effective than attempting to rank first when people search for relevant phrases such as “mortgage note buyer” or “real estate note buying.”

Smart Investing Strategies

Whether you’re buying or selling, the most important first step is to do your homework. Unlike distressed house buyers who strive to get in and out as quickly as possible, note buyers should spend plenty of time performing due diligence, including checking payment history, making sure everything is secure and steady, and checking credit scores. It’s worth noting that a score between 615 and 650 is usually just fine for private mortgage note investing.

The Pros and Cons of Short or Long Amortization

A note with a 10-15 year amortization is ideal, but you’re going to pay for it. A mortgage note with a 30+ amortization is usually going to be cheaper, for better or worse. Finding a note with a short amortization isn’t always feasible, but the return on investment is inevitably going to be significantly higher. If a seller can’t offer that, it may be worth looking into the option of selling a portion of the note.

Do Business with a Reputable Company

Amerinote Xchange proudly offers over a decade of experience in real estate note buying, and Abby Shemesh has been in the mortgage business since 1999. You won’t find a more qualified or reputable buyer. If you’re interested in selling or acquiring mortgage notes, call 1-800-698-3650 to speak to one of our highly qualified professionals. You may also reach out to us online through our contact page for a fast response. Proceed with the utmost confidence. Call Amerinote Xchange today.