Lesson: What is a note?

Let’s start with some basics:

1. What Exactly Is A Note?
2. Why Ignore Profits in the Note Business, when you are already in it? (Surprised?)

Most real estate investors have heard of the “Note Business” but many misunderstand it while others think that it is completely separate from the real estate business.

The fact is, most real estate investors are in the note business, and they just don’t know it.

The note business is the financing side of the real estate business.

In the simplest terms, the note business is based upon the purchase, sale, and assigning of two documents: the promissory note and the mortgage agreement.

These two documents represent a promise to pay and a solution for non-payment.

Note = Promissory Note = IOU (I Owe You)
Mortgage = Collateral Agreement = Foreclosure Agreement

When someone borrows money to purchase real estate, they have to sign an agreement to promise to pay it back.

This agreement also outlines the terms of the payback.

This written promise is not enough to get a loan.

This promise must be backed by collateral of value, which is typically the real estate itself.

The collateral agreement pre-authorizes the foreclosure of the property if the debt is not paid according to the promissory note.

A. Move from the Paying End to the Receiving End of the Business

So if you have ever borrowed money from a traditional lender, private or hard-money lender, or even a property seller, you have been in the “note business”!

Well, you have been on the paying side of the note business.

So why not get on the receiving end of the note business?

In the receiving end of the note business, you can:
* receive monthly cash flow without the headaches and liabilities of being a landlord,
* get lump sum cash payouts,
* even end up with the property at 30 to 40 cents on the dollar.

B. Acquire Property or Cash Flow for Pennies on the Dollar

Today’s inventory of both performing and non-performing notes is so massive that it doubles the number of foreclosures since 2008.

This supply has prices for notes at historical lows but it will not last forever.

When you buy a non-performing note on a vacant home, you will acquire a “Deed in Lieu” or foreclose and end up with the property.

You are a real estate investor simply acquiring property in a different way.

If you buy a non-performing note on an occupied property, you will either modify the loan to start receiving monthly cash flow, get a Deed in Lieu, or foreclose.

When you purchase a performing note, you acquire long term, real estate backed, monthly cash flow.

Today, these assets can be purchased for 60 cents on the dollar.

That is an unbelievably good deal.

No landlording, no hassles, just automatic monthly deposits into your account.

C. Learn More

At Traction REIA’s events next week, NoteSchool will show you case studies were notes were purchased for as little as $3,000 and then made triple digit returns.

You will walk in curious about the Note business, and you’ll walk out knowing how to easily make it produce profits for you.

You owe it to yourself to learn more about this huge opportunity in real estate.

“Rich Rewards in Notes: Why Every Real Estate Investor Must Learn Notes”
Taught by NoteSchool’s Joe Varnadore:
Thursday March 15th at the Sheraton Tysons Corner

Full details:

And then on Saturday March 17th attend:
“Gold in Notes” a Full Day Training Masterclass on Note Buying.

Limited seating, so get your seat now at:

See you there!
Tom Zeeb

Traction REIA:
9+ Year Recipient of the National REIA “Honors of Merit”
and the “Award of Excellence”
For Best Real Estate Investor Association!


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