All
Members
Companies
Blog
Forums
Podcast
Webinars
    User Log in  /  Sign up
  • Forums
    Newest Posts Trending Discussions Followed Forums Real Estate News & Current Events General Landlording & Rental Properties Buying & Selling Real Estate Deal Analysis See All
  • Education

    Read

    BiggerPockets Blog BPInsights: Expert Analysis Guides Glossary Reviews Member Blogs

    Watch

    Webinars Video Library Financial Independence Blueprint Intro to Real Estate: Rentals

    Listen

    BiggerPockets Real Estate Podcast BiggerPockets Money Podcast BiggerPockets Business Podcast Real Estate Rookie Podcast Daily Podcast (Audio Blog)

    Topics

    Business Operations Finance Finding Deals Property Management Property Types Strategy
  • Network

    Recommended Vendors

    Real Estate Agents Mortgage Lenders Hard Money Lenders Insurance Contractors Investment Companies Build Your Team

    Search

    Members Events Jobs
  • Tools

    Calculators

    Rental Property Fix and Flip BRRRR Rehab Estimator
    Wholesaling Mortgage Payment 70% Rule Airbnb

    Services

    BPInsights: Property Insights Tenant Screening Property Management Lease Agreement Packages

    New Feature

    BPInsights (beta)

    Quickly analyze a property address or ZIP Code to compare your rent in your neighborhood.

    Analyze a property
  • Find Deals
    Real Estate Listings Find Foreclosures External Link Ads, Jobs, and Other
  • Bookstore

    Real Estate Books

    Profit Like The Pros Bidding to Buy See all books

    Featured Book

    BiggerPockets Wealth Magazine book cover
    BiggerPockets Wealth Magazine

    Written by financial journalists and data scientists, get 60+ pages of newsworthy content, expert-driven advice, and data-backed research written in a clear way to help you navigate your tough investment decisions in an ever-changing financial climate! Subscribe today and get the Oct/Nov issue delivered to your door!

    Get the Magazine
  • Pricing
Log In Sign up
User
Quick search links
Podcast Hard Money Lenders Books Washington
ForumsArrowIndiana Real Estate Q&A Discussion ForumArrowWhy Notes Are Great To Have
  • Newest Posts
    • Newest Posts
    • Unanswered Discussions
  • Trending
    • Top Discussions
    • Trending Discussions
  • Browse Forums
Search Nova
Create post

Why Notes Are Great To Have

4 Replies

  • Share on Facebook
  • Share on Twitter
  • Share on LinkedIn
Rotate Log in or sign up to reply
user profile avatar
  • Posts 22
  • Votes 7

Devante A Johnson
Lender from Washington, DC

posted over 3 years ago
After several years of being in real estate, I have came across all players in the industry. I have seen many strategies from Fix and Flip to Buy and Hold but I have to say that the private notes business has caught my eye. Its amazing to have witnessed how notes have changed many people’s lives, from giving extra security to one’s retirement portfolio, or having the ability to get a property for a discounted price. I have only seen great benefits in the note business and I believe many other Real Estate Investors should look more into it.
Rotate Log in or sign up to reply
user profile avatar
  • Posts 37
  • Votes 12

Paul Aqua
Property Manager from Sacramento, California

replied over 3 years ago

Could you please describe how notes are a better investment than multifamily or fix and flips? I am curious on learning more information.

Rotate Log in or sign up to reply
user profile avatar
Check Rosette Top Subjects:
Rentals, Flipping, and Team
  • Posts 3.8K
  • Votes 3.0K

Chris Seveney
Investor from Northern Virginia

replied over 3 years ago

@Paul Aqua
Assuming you buy at the right price:

1. Your the bank, the higher up the food chain you are the better position you are always in
2. Your in an equity position where you typically have 50% equity in the investment. So if the asset decreases in value your still in a good position
3. You have multiple exit strategies.
4. If it is performing it is mailbox money as you collect payments
5. Your not responsible for maintenance or capex or unexpected costs on a property
6. You manage consultants who are typically professionals and large companies (not some small contractor who never shows up)

This is just a few points - there are always positives and risks with any investments

Rotate Log in or sign up to reply
user profile avatar
  • Posts 37
  • Votes 12

Paul Aqua
Property Manager from Sacramento, California

replied over 3 years ago

@Chris Seveney   Thank you for pointing those facts out for me, At this time I do not think this something I am comfortable investing in but who knows?

Rotate Log in or sign up to reply
user profile avatar
Check Rosette Top Subjects:
Rentals, Flipping, and Team
  • Posts 3.8K
  • Votes 3.0K

Chris Seveney
Investor from Northern Virginia

replied over 3 years ago

@Paul Aqua

Definitely not something to buy without having training and understanding the due diligence process

Rotate Log in or sign up to reply
  • 1

Related Discussions

  • General Landlording & Rental PropertiesCan I add my rental property to a form 4562 Depreciation?Mar 29 2017, 10:25
  • General Landlording & Rental PropertiesHow much property taxes should I submit to IRS?Mar 29 2017, 08:51
  • Tax Liens, Notes, Paper, & Cash Flows DiscussionWhich NOTES have MORE RISK?Nov 12 2017, 14:18

Related Blog Posts & Podcasts

  • BiggerPockets Money Podcast 190: Why You Should Always Have Side-Income: Finance Friday with RachaelApr 23 2021, 00:00
Resources Read, see, and learn more!
Link Real Estate Investment Calculators
Link BiggerPockets Blog
Link Path to Purchase
Link Mortgage Loans
Link Find a Contractor
Link Real Estate Agents
Link Hard Money Lenders
Link Real Estate Listings

Top Contributors

Brad Mistina
Brad Mistina
Merrillville
9.29
Score
Brent Beard
Brent Beard
NW Indiana
5.0
Score
Anthony Sgro
Anthony Sgro
Richmond, VA
4.76
Score
Caleb Teachout
Caleb Teachout
FL
3.33
Score
Matt M.
Matt M.
Easton, PA
2.62
Score
Log in Sign up

Log in

Forgot password?

If you signed up for BiggerPockets via Facebook, you can log in with just one click!

Log in with Facebook

Or
btn_google_dark_normal_ios Created with Sketch. Continue with Google

Let's get started

We just need a few details to get you set up and ready to go!

Use your real name

Use at least 8 characters. Using a phrase of random words (like: paper Dog team blue) is secure and easy to remember.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.

Or
btn_google_dark_normal_ios Created with Sketch. Continue with Google

Why create an account?

Receive a free digital download of The Ultimate Beginner's Guide to Real Estate Investing.

Connect with 1,000,000+ real estate investors!

Find local real estate meetups and events in your area.

Start analyzing real estate properties, we do the math for you.

It's free!

Explore

  • Membership
  • Community
  • Education
  • Marketplace
  • Tools
  • FilePlace
  • REI Resources
  • Perks
  • Glossary
  • Reviews
  • iOS App
  • Android App

Company

  • About Us
  • Press
  • Advertising
  • Careers
  • Stats
  • Contact Us

Important

  • Editorial Guidelines
  • Terms of Use
  • Rules
  • Privacy
  • FAQ

Social

  • Facebook
  • Twitter
  • YouTube
  • Instagram
© 2004-2021 BiggerPockets, LLC. All Rights Reserved.