Buying Discounted Notes -
Foreclosing on a non-performing note can be expensive and time-consuming.
Borrowers are making regular payments. These offer lower risk and steady, immediate cash flow. buying discounted notes
You buy a note with a $100,000 balance for $70,000. Foreclosing on a non-performing note can be expensive
First position notes are paid first in a foreclosure, while "second" or junior notes are riskier but often cheaper. Key Benefits You buy a note with a $100,000 balance for $70,000
If the property value drops below your investment amount, your "security" is weakened.
💡 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
