Hey Everyone,With real estate equity fundraising slowing but private credit strategies booming (debt funds now grabbing bigger shares of originations per MSCI), I'm seeing performing notes emerge as a standout opportunity for 2026.Key trends I'm watching that could impact your note strategy:Investor loan defaults rising (especially fix-and-flip and multifamily debt maturities), creating more inventory for buyers like us who focus on seasoned, clean-paying 1st lien residential notes.​Yields holding strong at 9-12% for well-equitied performing notes, beating CDs by 2-3x while offering real downside protection.​Seller-finance & hard money surging amid tight institutional lending—great for secondary buyers targeting re-performing assets.​Liquidity improving via digital platforms, but smaller regional banks offloading non-core notes to meet capital rules (14% YoY sales velocity up).​Question for the group: With this shift toward debt over equity, are you buying more performing notes to hold for yield, or repositioning into workouts/NPLs?

The thing that's been bugging me lately is I don't have a clean way to see how my whole portfolio is actually performing in one place.Like — I can run numbers on a new deal fine, but when I'm trying to figure out if I should sell one property to fund another, or refi vs hold, or just understand which of my properties is actually my best performer after all expenses...

Hey BP community,I’m looking for some perspective from other investors who’ve bought or sold performing residential notes.For those of you who’ve sold a performing 1st position note in the past:What made you decide to sell instead of hold?

Hey BP community,I’m talking with more and more owners of seasoned, performing 1st position residential notes who are wondering if now is the right time to sell the note instead of holding for long‑term cash flow.I’d love to hear from both sides of the table.For those who have sold a performing note recently:What made you finally decide to cash out instead of keep collecting payments?

It is worth what the comps say it is worth.Unlike a widget company that might have contracts and existing business, a STR doesn't have that.Past performance doesn't guarantee future results.

Transactions get forgotten, receipts disappear, and categories become guesses instead of accurate records.Keeping books updated monthly avoids this problem entirely.2.

When dealing with existing, and particularly older, construction, there are endless problems that can arise if you do not perform adequate inspection/investigation, so you need to account for potential added costs in every case.Once you find a Contractor that provides reasonable bids AND performs well, you need to respect and take care of them, as they can make you, or break you. 

This is because even poor purchases with poor, or no, underwriting the performance was good.  

Note buyers – performing residential paper hitting sub-9% yields with rates steady.

A well-maintained 2–3 family that has been continuously owner-occupied often performs very differently from one that has been purely rental for decades, even on the same street.