Buying Discounted Notes [FAST]

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.

When a lender (like a bank or private seller) wants to free up cash, they may sell their mortgage notes at a discount.

You collect interest on the full $100,000 balance, significantly increasing your effective yield. buying discounted notes

The loan is secured by real estate, providing a safety net if the borrower stops paying. Types of Notes

You buy a note with a $100,000 balance for $70,000. Borrowers have stopped paying

💡 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. For financial advice, consult a professional. Learn more Should You Only Buy First Position Notes? - BiggerPockets You collect interest on the full $100,000 balance,

Foreclosing on a non-performing note can be expensive and time-consuming.