How To Buy Notes — And Mortgages

: This is the most critical phase. You must verify:

: Use online marketplaces like Paperstac or Note Trader, or contact banks and credit unions directly to find "off-market" assets.

: Notes are often sold at a discount (e.g., paying $35,000 for a $40,000 balance), which instantly creates equity and increases your yield. how to buy notes and mortgages

Buying mortgage notes allows you to "be the bank" by purchasing the debt secured by real estate. This strategy provides passive income through monthly principal and interest payments without the responsibilities of property management.

: Review at least 12–24 months of payment history. : This is the most critical phase

: This is a spreadsheet containing loan details like unpaid balance, interest rate, and payment history.

: Check for superior liens (like unpaid taxes) that could wipe out your interest. Buying mortgage notes allows you to "be the

: Ensure the property is worth more than the loan balance.