We buy houses in Colorado. Are you a real estate investor looking at investing 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 a lot of the downside and headaches that other investors experience. Keep reading to find out the answer. We are your local Colorado home buyers and we offer cash for houses in Colorado.
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 complete 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) and you’re 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 your expenses. After all, you’re probably investing to take care of your family, so doesn’t it make sense to make sure 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 that you won’t be able to hold yourself to your limit then get a trusted friend to help you.
#2. Get Cash Flowing Notes Only
One way to ensure you don’t go broke buying notes is to invest in cash flowing notes. That way, even if you spend a large amount of your investable capital on notes, they’ll put cashback 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 you 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.
Sell My House in Colorado
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 think you need to sell your house in Colorado fast, then you may need us. We here at SethBuysHouses are local homebuyers in Colorado helping local home owners have a quick selling process with no hassle. We either hold these houses ourselves or remodel and fix them up for someone else who would love to live there and enjoy the home themselves. If your Colorado house qualifies, we can make you a quick and fair cash offer.