Buying Discounted Notes -

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 collect interest on the full $100,000 balance, significantly increasing your effective yield. buying discounted notes

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

If the property value drops below your investment amount, your "security" is weakened. the title's clarity

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

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