Monrovia, CA · Member since 2025 · 98 posts · 37 votes
I know there are a lot of seasoned investors here, and I’d love to learn from your experience.
Whether you’ve bought performing or non-performing notes, what’s a lesson you wish you knew when you started?
I’m currently networking with buyers, sellers, and brokers across the country and would love to hear your thoughts — I’m always looking to expand my perspective on real estate investing. Appreciate any tips!
170 Glenn Way Suite 5 San Carlos CA 94070, United States · Member since 2019 · 4 posts · 3 votes
1y
The #1 lesson I’ve learned from buying and selling notes is that due diligence will make or break your deal.
It’s tempting to focus on the headline numbers — the discount on a non-performer or the yield on a performing note — but the reality is the collateral, the borrower, and the servicing strategy determine your outcome. I’ve seen “great” deals turn sour because taxes weren’t current, the property condition was misrepresented, or the servicer couldn’t execute. On the flip side, I’ve also seen discounted non-performers become home runs simply because the borrower communication was handled right and the exit plan was clear from day one.
So for me, the lesson is simple: don’t shortcut the homework. Always verify the collateral value, check the title, understand the borrower’s story, and map out at least two exit strategies before wiring a dime. Notes can be an incredible investment, but only if you respect the details.