Buying real estate notes from banks is a specialized investment strategy where you purchase the debt (the promissory note) and the security interest (the mortgage or deed of trust) rather than the physical property itself. By doing this, you essentially step into the bank's shoes, becoming the lender entitled to receive monthly principal and interest payments from the borrower. 1. Identify Your Strategy: Performing vs. Non-Performing
: These are "distressed" loans where the borrower has fallen behind on payments for 90 days or more . buying real estate notes from banks
The type of bank note you target dictates your workload and potential return. Buying real estate notes from banks is a