notes

[Zubair Khan]

I'm looking into venturing into the note business but don't really understand how it works. Could someone explain what non-performing notes are performing notes and how you can profit off of both? Also wanted to know if there was more of an advantage buying notes at a discount? Any feedback will be greatly appreciated.

[Steve Babiak]

Originally posted by Marc Faulkner:

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There are several ways to profit from NPN's. You can buy the note real cheap, foreclose on the property and rent or sell.
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Another alternative is buying the note at a discount, doing a loan modification with the borrower (so that the borrower is able to perform as agreed), and then collecting cash flow from the modified loan.