Active or Passive note investor

[Don Konipol]

Do you consider yourself an Active or a Passive note investor? Or both? Can you describe which of your strategies, tactics, or programs you consider as Active investing, and which you consider Passive investing?

[Fred Moskowitz]

Great question @Don Konipol

I feel that being Active or Passive in note investing is something that spans over a range. Here are my thoughts:

Very Passive = Investing in a managed note fund. Minimal ongoing activity required by the investor other than performing due diligence prior to investing in the fund.

Moderately Passive = Investing in performing notes or partials. Requires ongoing risk management to continuously monitor taxes, senior liens, regulatory compliance, loan servicing.

Active = Investing in non-performing notes, note brokering.