Buy And Sell Notes -

The borrower is paying on time. Your goal is passive income. You buy these at a modest discount to the face value to achieve a yield higher than traditional bonds or CDs.

Even if the note is for $100k, if the house is only worth $80k, you are "underwater." Note buyers look for a "protective equity" cushion. buy and sell notes

If you buy a "second" mortgage and the "first" mortgage forecloses, your investment can be wiped out completely. The borrower is paying on time

Buying and selling "notes"—specifically real estate mortgage notes—is the "invisible" side of property investing. While most people focus on the physical structure, note investors focus on the . When you buy a note, you aren’t buying a house; you are buying a legal promise to pay, effectively stepping into the shoes of the bank. Even if the note is for $100k, if

Sellers usually offload notes for the "Three Ds": They might need cash for a medical emergency, a new investment, or they are simply tired of "clipping coupons" and want to exit the management of the debt. 6. The Risks