Discounted Notes - Buying
The loan is secured by real estate, providing a safety net if the borrower stops paying. Types of Notes
If the property value drops below your investment amount, your "security" is weakened. buying discounted notes
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 The loan is secured by real estate, providing
Borrowers are making regular payments. These offer lower risk and steady, immediate cash flow. This strategy can provide high-yield passive income or
Borrowers have stopped paying. These are bought at much steeper discounts, often with the goal of restructuring the loan or foreclosing to take the property.
You buy a note with a $100,000 balance for $70,000.
💡 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