Buying Discounted Notes (POPULAR × 2024)

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

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

You buy a note with a $100,000 balance for $70,000. First position notes are paid first in a

Buying discounted notes allows you to act as the "bank" by purchasing existing mortgage debt at a price below its face value. This strategy can provide high-yield passive income or a path to acquiring property through foreclosure. How It Works Buying discounted notes allows you to act as

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 must verify the property's value, the title's clarity, and the borrower's payment history before buying.

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