Real Estate Note Investing: How To Generate Passive Income Using Mortgage Notes

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Real estate investors often start their journey by purchasing their primary residence—some branch out into active investing such as flipping houses while others decide on wholesaling real estate.

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Real estate note investing can be a great way to build generational wealth and create income.

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A mortgage note, also known as a real estate lien note or borrower’s note, is the document you sign when you take a mortgage

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There are various types of mortgage notes in different categories. The four leading real estate note investing categories include lien position, loan performance, asset class, and type.

While we may not agree with everything he says, there are nine decades of wisdom buried in Warren Buffett’s quotes.

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The buy and hold strategy of performing notes is an investment strategy whereby the investor buys performing mortgage notes from the lender.

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Investors make money by buying the discounted notes in bulk from lenders and then reselling the discounted notes to other individual investors “as-is.”

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Sometimes the investors might themselves rehab the nonperforming note before selling to other investors.

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