Real estate notes are frequently referred to as “real estate receivables” and are used when a piece of land or real estate is sold. These legal documents assign buyer rights and record details of the transaction. Common real estate notes include mortgage notes, land contracts, or a contract sell where the buyer makes cash payment directly to the seller.

Real estate receivables are oftentimes used when individuals purchase stocks within a property. Instead of acquiring the entire property, many investors partner with others to afford the purchase. Investors purchase a certain amount of stocks and the money goes to fund a real estate investment trust. REIT’s are companies that own a considerable amount of land or properties such as apartment or business complexes, shopping malls or retail strip malls.

I’m sure you already know that the residential real estate market has all but dried up. Oh sure, there are residential investors out there waiting like vultures to profit off of some poor homeowner’s foreclosure misfortune but the one area of real estate investing that is hot right now is commercial real estate.

Everyday I am getting phone calls from people wanting to get a commercial mortgage and get into this hot new market. Investing in commercial real estate is quite a bit different from residential real estate investing. With commercial real estate lending the lenders are mainly interested in the property. It is less about the individual person or company that is buying or refinancing the commercial property and more about the income and condition of the commercial property.