Would YOU Consider Notes Investing Passive Residual Income?

2 Replies

Hey BP nation! I recently read Brandon Turners 14 Things Real Estate Investors Should Do Every Day and a big one was "Review Your Big Goals".

One of my big goals is to create passive income that I can collect with little hassle and owner financing homes to owner occupants is a business model that I find to be a very intriguing business acumen. It seems that with a loan servicing company it can be truly passive! I know it's definitely not as easy as it sounds, but nothing worthwhile in life comes w/o its costs!

The only problem I see is that unlike land lording, the payments one collects will eventually run out when the loan matures, and the payments do not keep up with inflation!

Would YOU classify income of this nature to be passive?

I'm 15 & I've got BIG plans, so I don't want to start off on the wrong foot.

Thanks in advance!

Hi John -

I absolutely consider investing in notes one of the best ways to create a true passive income. I wish I would've found it at your age! I've been investing part time in real estate while running our marketing company over the last 14 years. Two years ago I found real estate notes and I feel like my life is changed forever! Since then I've worked to put my marketing company on auto pilot as much as possible so I can focus the majority of my time on note investing.

We are working on a seller financing model with several top producing REO brokers and agents that I'm very excited about.

I have a 15 year old son as well. I'm going to tell him about you! Very impressed that you are starting so young!

Travis

There is more to the story than the question allows. "Can" note investing be passive? Yes.

Can note investing be not passive? Yes.

The simple example would be working with a performing loan and working with a non-performing loan. When the borrower is paying as agreed there is not much to do but cash the check. When the borrower starts to go delinquent, there is more work to do. When the borrower actually defaults, there is much more to do.

John, for a guy who is only 15, I will say. I am very impressed. You seem articulate and looks like you are becoming a little adverse. Wow! Keep it up, you will end up going somewhere further than the place you arleady are. Nice.

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