Discounted Notes — Buying

You collect interest on the full $100,000 balance, significantly increasing your effective yield.

First position notes are paid first in a foreclosure, while "second" or junior notes are riskier but often cheaper. Key Benefits buying discounted notes

The loan is secured by real estate, providing a safety net if the borrower stops paying. Types of Notes You collect interest on the full $100,000 balance,

Borrowers are making regular payments. These offer lower risk and steady, immediate cash flow. buying discounted notes

Borrowers have stopped paying. These are bought at much steeper discounts, often with the goal of restructuring the loan or foreclosing to take the property.