Passive Income Through Notes – Realistic or Overhyped?

[Melinda Eilts]

A lot of people talk about real estate notes as an easy way to generate passive income. From your perspective, is this a realistic expectation? Or do you think there are challenges most investors overlook? I’d love to hear real experiences from the community.

[V.G Jason]

Quote from @Chris Seveney:

I never call investing in something directly as passive. Now notes can lean on the passive side but there is a lot of work to underwrite and either originate or buy a loan. If it goes into default it’s very different than dealing with a non paying tenant So long story short / I wouldn’t call it passive but if it performs it can be easy to manage

Agreed.

Passive investments are a farce.

You invest actively, then keep systems in place to allow a proficient and diligent way of monitoring. Definitely a bit more dogmatic, but when things rip or dip you become pragmatic.

Defining rip or dip isn't necessarily historical but also relative. People need to apply these principles in everything.