• Promissory Note: A type of debt investment protection instrument. It is a legal document that contains information about the terms of a loan, such as the repayment schedule, interest rate, and other conditions. It was used to secure a loan made to another party by a real estate investor, such as a real estate developer or borrower. Real estate investors can benefit from secured promissory notes, which offer a tangible asset as collateral for the loan. This can help to reduce the risk of debt investment, particularly if the borrower has a poor credit history.
• Mortgage: It is a type of loan used to purchase or refinance real estate. When a borrower obtains a mortgage, they must make regular payments to the lender that include both the principal and interest. It can be an effective tool for financing the purchase of investment property. Using a mortgage to finance the purchase of a home allows investors to leverage their capital and potentially increase their returns.
• Insurance: Used to protect assets and secure them against potential losses. Property insurance, liability insurance, and title insurance are all types of insurance policies that can be used in real estate investing. Investors can help mitigate the risks associated with owning and managing properties by securing real estate assets with insurance policies. In the event of an unexpected event, such as a fire or natural disaster, insurance can assist in covering the costs of repairing or replacing damaged property.