The loan is secured by real estate, providing a safety net if the borrower stops paying. Types of Notes
Borrowers are making regular payments. These offer lower risk and steady, immediate cash flow. buying discounted notes
AI responses may include mistakes. For financial advice, consult a professional. Learn more Should You Only Buy First Position Notes? - BiggerPockets The loan is secured by real estate, providing
💡 Unlike being a landlord, there are no "tenants, toilets, or termites" to manage.💰 Higher Yields: Buying at a discount creates an automatic gain in equity and a higher ROI than traditional bonds.🛡️ Asset Security: Your investment is backed by a physical asset that can be liquidated if necessary. Risks to Watch For AI responses may include mistakes
Buying discounted notes allows you to act as the "bank" by purchasing existing mortgage debt at a price below its face value. This strategy can provide high-yield passive income or a path to acquiring property through foreclosure. How It Works
You buy a note with a $100,000 balance for $70,000.