Paper Investor

what is a paper investor? anyone?

Comments(1)

  • 64Ford26th August, 2004

    Someone who invests in notes. While there are all kinds of notes such a promissory notes, etc. in the real estate world we are usually referring to mortgages.
    An example is:
    you buy a house for $100,000. The entity that loaned that money may sell that note/mortgage to a secondary investor. Depending on your credit, interest rate of the note, and terms, the investor may pay, say $90,000. The investor does not own property, but he owns "paper".
    This is a simplified explanation of the process, obviously.

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