Buying Discounted Notes Site

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

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

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

Borrowers are making regular payments. These offer lower risk and steady, immediate cash flow.

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

If the property value drops below your investment amount, your "security" is weakened. For financial advice, consult a professional

First position notes are paid first in a foreclosure, while "second" or junior notes are riskier but often cheaper. Key Benefits