How To Buy Discounted Real Estate Notes Guide

: Loans where the borrower is current on payments. These are typically sold at smaller discounts (e.g., to free up cash for the seller) and offer steady passive income.

: Loans where the borrower has defaulted. These are sold at deep discounts—sometimes 20% to 70% off —because they require more work to resolve. 2. Where to Find Discounted Notes Investing in Real Estate Notes Guide how to buy discounted real estate notes

Buying discounted real estate notes involves purchasing the debt secured by a property—rather than the property itself—at a price lower than its face value. This strategy allows you to step into the role of the "bank," collecting monthly principal and interest payments often at a higher effective yield than the original note's interest rate. 1. Types of Notes to Buy : Loans where the borrower is current on payments