Buying Discounted Notes -

You buy a note with a $100,000 balance for $70,000.

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.

If the property value drops below your investment amount, your "security" is weakened. buying discounted notes

💡 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

You collect interest on the full $100,000 balance, significantly increasing your effective yield. You buy a note with a $100,000 balance for $70,000

AI responses may include mistakes. For financial advice, consult a professional. Learn more Should You Only Buy First Position Notes? - BiggerPockets

Borrowers are making regular payments. These offer lower risk and steady, immediate cash flow. If the property value drops below your investment

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