You buy a note with a $100,000 balance for $70,000.
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.
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
When a lender (like a bank or private seller) wants to free up cash, they may sell their mortgage notes at a discount.
You collect interest on the full $100,000 balance, significantly increasing your effective yield. You buy a note with a $100,000 balance for $70,000
Foreclosing on a non-performing note can be expensive and time-consuming.
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
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