Buying Discounted Notes ◆

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

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

AI responses may include mistakes. For financial advice, consult a professional. Learn more Should You Only Buy First Position Notes? - BiggerPockets You must verify the property's value, the title's

First position notes are paid first in a foreclosure, while "second" or junior notes are riskier but often cheaper. Key Benefits You must verify the property's value

The loan is secured by real estate, providing a safety net if the borrower stops paying. Types of Notes