Buying Discounted Notes Apr 2026

Borrowers are making regular payments. These offer lower risk and steady, immediate cash flow.

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

If the property value drops below your investment amount, your "security" is weakened. Borrowers are making regular payments

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 Types of Notes If the property value drops

Foreclosing on a non-performing note can be expensive and time-consuming.

When a lender (like a bank or private seller) wants to free up cash, they may sell their mortgage notes at a discount.

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