Sell Notes - Buy And

Foreclosure timelines vary wildly. In a "judicial" state like New York, it can take years to seize a property; in a "non-judicial" state like Texas, it can take weeks.

The "magic" of note investing lies in the . Example: A note has a balance of $100,000 at 6% interest. buy and sell notes

Eventually, that seller might want a lump sum of cash rather than small monthly payments over 30 years. This is where the note buyer steps in. They buy that stream of future payments at a , providing the seller liquidity while securing a high-yield investment for themselves. 2. Performing vs. Non-Performing Notes The market is divided into two distinct worlds: Foreclosure timelines vary wildly

Even if the note is for $100k, if the house is only worth $80k, you are "underwater." Note buyers look for a "protective equity" cushion. Example: A note has a balance of $100,000 at 6% interest

Buying and selling notes is the ultimate "passive" real estate play. You have no tenants, no toilets, and no termites. You simply own the debt. However, it requires a high "financial IQ" to navigate the legalities of the paperwork and the nuances of the discount.

If you buy a "second" mortgage and the "first" mortgage forecloses, your investment can be wiped out completely.