Investing in notes is a great way to let money work for you without needing to be involved with the technical aspect and day-to-day operations of it.

In this episode, we have with us real estate entrepreneur, mortgage note investor, tax accountant, and mindset and performance breakthrough coach Lorraine Millington. She goes deep into the nitty gritty of mortgage note investing, the difference between performing and non-performing loans, and even shared a few steps on how you can get started.

As the Founder and CEO of Melanin Homes, Lorraine and her team specialize in passive income strategies through mortgage note investing nationwide. They work directly with investors who are looking for truly positive cash flow assets, highly competitive returns on their investment, and the opportunity to Become the BANK! As President and Owner of Melanin Tax Solutions, Lorraine is an enrolled agent providing tax, bookkeeping, and tax resolution services to individuals and small business owners to help clients resolve any audit inquiries, reduce their tax liability, effectively claim all applicable tax deductions and credits and stay financially organized. As a mindset and performance breakthrough coach, Lorraine helps people get out of their own way by removing the mental blocks and limiting beliefs that are keeping them stuck in what they are doing and preventing them from moving forward to who they should be BEING, to get what they really want for themselves and for their life.

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[1:00 - 13:59] Who is Lorraine Millington?

• She has always been around real estate and her family is within traditional real estate as well for a long time
• She found an effective way to get engaged with real estate without having to deal with its day-to-day operations
• Her turning point into turning to mortgage note investing is finding leverage in taking advantage of the opportunity and the fact that debt is not always bad
• She worked with legal for a long time dealing with contracts and papers associated with mortgage note investing as well as tax professional

[14:00 - 20:28] What You Need To Know bout Mortgage Note Investing

• Lorraine explained that mortgage note investing is buying the debt associated with the property instead of buying the actual property
• • It is a great way of letting money work for you and having passive Income with minimal involvement
• She shared two ways of mortgage note investing
• • Performing Loan - loaned through the bank to purchase a property creating a mortgage to that property & signing a promissory note for the terms of payment
  • Non-Performing Loan - purchasing debt notes from performing loan and you have the ability to modify the terms or foreclose if the person stopped communicating giving you control and flexibility to make passive money

• With mortgage note investing, you have freedom and control over the transaction that is kept in progress while also giving you the chance to profit.

[19:47 - 22:43] How to Get Started with Mortgage Note Investing

• Lorraine suggested five checklists on how to get started;
• • Have an entity in place to protect you from a liability
  • You can start with smaller amounts of capital. There’s a wide range so you can get in depending on the price point
  • Have knowledge of education meaning doing research or taking courses to get more understanding before getting involved
  • Partner with a mentor/coach or be with people who are already in this industry to learn while you earn
  • Extend your reach or expand

[22:44 - 28:04] Performing Notes Versus Non-Performing Note:s

• Performing Note- There are risks to consider such as early payoff or they stop making their payments monthly.
• Non-Performing Note - In the event that payment stopped, you can take foreclosure action or you can take possession of the property and sell it as is so you are getting the return on your investment

[28:05 - 28:49] Closing Segment

• Watch out for part 2 of our conversation with Lorraine!

Key Quotes

“When someone goes to purchase or takes out a loan or a mortgage to purchase a property, they're not calling the bank and saying, hey, I have a leak in my roof. No, you're taking care of that yourself because you own that property.” - Lorraine Millington

“If you're listening and you have a little bit of capital to deploy, and you're really interested in something like this, really start educating yourself and aligning yourself with people who are already in this line or in this in this industry and kind of bootstrap from there.” - Lorraine Millington

“When I'm talking about ROI or return on investment, I relate that more to a non-performing loan. And the reason why is because, generally speaking, when I have a non-performing loan that I'm taking all the way to being able to recoup this asset back in my portfolio, I'm receiving a lump sum.” - Lorraine Millington

Connect with Lorraine Millington through www.melaninhomes.com. Follow her on LinkedIn and subscribe to their Youtube channel. Contact her at +1 440-305-5195.

Let’s get connected!

You can find Nicole on LinkedIn, Instagram, or Facebook. Visit her website https://noirvestholdings.com

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